Oracle's
takeover bid for PeopleSoft has been continuing since
the last 15 months. Launched in June 2003, the hostile
takeover "attempt", if successful, would
propel Oracle into the top league of business software
makers in the world, only next to SAP. But Oracle
had to face numerous legal problems in its bid from
the Justice Department, JD Edwards and PeopleSoft.
In September 2004, a Federal Judge in the US ruled
that Oracle could pursue its bid for PeopleSoft. Following
this ruling, the only impediment in Oracle's way to
acquire PeopleSoft is the European Commission. The
article enlists the important aspects of the deal,
as the takeover saga continues.
In
June 2003, Oracle, the second largest software company
in the world after Microsoft, made an unsolicited,
hostile $7.7 bn bid to acquire rival PeopleSoft. The
bid was vehemently resisted by PeopleSoft, which made
it clear that it wanted to remain independent. Oracle
also faced a host of legal challenges including antitrust
lawsuits filed in seven states by the Justice Department
to block the deal. PeopleSoft and JD Edwards had also
filed law suites, scheduled to go to the court in
the second half of 2004. On September 9, 2004, a Federal
Judge ruled that Oracle could pursue its PeopleSoft
deal. This landmark judgment set the stage for an
exciting climax to a 15-month takeover game. |
