Business software maker PeopleSoft Inc. on Wednesday said its board had rejected Oracle Corp.'s lowered bid for the company, saying it was inadequate.
PeopleSoft, which has been fighting a hostile takeover attempt by Oracle for almost a year, also said it settled a shareholder suit related to a refund plan that is part of the company's defense against Oracle.
In November, shareholders sued PeopleSoft for implementing a refund plan to prevent customers from defecting in the face of the Oracle offer. The plan promised to pay between two and five times a customer's license fees if PeopleSoft was acquired within two years.
On May 14 Oracle lowered its cash offer for PeopleSoft by 19 percent, to $21 per share, or $7.7 billion, from $26 per share, or $9.4 billion, due to a decline in PeopleSoft's share price.
In addition to rejecting the new bid, Pleasanton, California-based PeopleSoft said the offer by Redwood Shores, California-based Oracle was likely to be prohibited by antitrust laws. The U.S. Justice Department filed suit in February to block the deal.
