17 July 2003 | Robin Parker
Oracle is giving PeopleSoft's shareholders until tomorrow to take up its hostile bid for the rival enterprise resource planning software vendor.
Oracle said holders of 11 per cent of PeopleSoft's shares had already accepted the offer.
PeopleSoft said the "underwhelming" shareholder response was consistent with its board's belief that the offer undervalues the company and involves "unacceptable" risks.
The board has twice thrown out bids from Oracle.
The bids were launched in retaliation to PeopleSoft's planned merger with JD Edwards, a move that would put it ahead of Oracle and second only to SAP in the ERP software market.
PeopleSoft is guaranteeing customers refunds of up to five times the licence fees if Oracle stops developing its software after a merger. This means Oracle would have to pay up to $354 million to honour it.