Oracle Takes Control of PeopleSoft
REDWOOD SHORES, Calif. – Software giant Oracle Corp. (ORCL) said Wednesday that stockholders of rival PeopleSoft Inc. (PSFT) have tendered about 75 percent of the company's outstanding shares, granting Oracle control of the company.
In addition, Oracle has designated four representatives to serve on PeopleSoft's board, replacing PeopleSoft board members who have resigned and giving Oracle majority board representation. Two of the previous PeopleSoft board members will remain on PeopleSoft's board until the merger between the companies is completed.
The initial offering period of Oracle's tender offer to purchase all of PeopleSoft's outstanding common shares expired at midnight, with about 298.8 million shares tendered. Oracle also has a subsequent offering that expires on Jan. 4, which allows all stockholders who did not tender shares in the initial offering period to obtain the $26.50 per share offer price for their stock prior to completion of the second-step merger.
The companies' merger, which will create the world's second-largest business applications software maker, is expected to close in early January. Earlier this month, PeopleSoft agreed to a $10.3 billion buyout by Oracle, following an 18-month hostile takeover battle.
As reported late Tuesday, PeopleSoft founder Dave Duffield (search), who returned as CEO during the company's fight to prevent Oracle's bid, resigned as chairman, CEO and director on Dec. 21.