PeopleSoft Inc. Wednesday said its board had again unanimously rejected Oracle Corp.'s $8.8 billion hostile tender offer, and Oracle immediately appealed to PeopleSoft's shareholders, saying it would leave the decision up to them.
PeopleSoft Chairman and Chief Executive Officer Dave Duffield said in a statement the board concluded PeopleSoft "is worth substantially more" than Oracle's latest offer of $24 a share.
The PeopleSoft board again recommended PeopleSoft stockholders not to tender their shares to Oracle, which has said it will drop its offer if fewer than half of PeopleSoft shareholders tender their shares by Oracle's Nov. 19 deadline.
Oracle Chief Executive Larry Ellison responded by issuing a statement saying, "Beyond ($24 a share), there are better uses of our capital including other acquisitions and repurchasing our own shares.
"Oracle has been at this for a year and a half and it is now time to bring this matter to a close."
Oracle, which first launched the takeover battle for its smaller rival back in June 2003, proffered $24 per share last week as its "best and final" bid.
Early this year, Oracle had offered as much as $26 per share. Because PeopleSoft's board rebuffed that bid, many investors and sources within the industry expected PeopleSoft's board to reject Oracle's latest entreaty.
Oracle's executives have stayed busy in the past week lobbying PeopleSoft shareholders in favor of the bid, which it confirmed would be its last to a Delaware judge presiding over a lawsuit between the companies.
