Software maker says it reaches deal to buy rival for $10.3B, ending long hostile takeover bid.
December 13, 2004: 6:53 AM EST
NEW YORK (CNN/Money) - Oracle Corp. said Monday it has finally struck a deal to buy PeopleSoft, ending its 18-month hostile takeover battle.
Oracle (Research) said it is paying $10.3 billion, or $26.50 a share for the rival business software developer. That's up nearly 11 percent from PeopleSoft's (Research) Friday close of $23.95.
Separately, Oracle announced a better-than-expected gain in second quarter earnings.
"The real highlight of our most recent quarter was the 57 percent growth in our applications business, and this merger is going to make that applications business bigger and stronger," said a statement from Oracle Chairman Larry Ellison.
PeopleSoft put out its own statement saying its fourth quarter results have been running ahead of plan and that the new offer represented, "good value for PeopleSoft stockholders.
"This has been a long, emotional struggle, and our employees have consistently performed well under the most challenging of circumstances," said the statement from A. George "Skip" Battle, chairman of the PeopleSoft board's Transaction Committee.
Oracle's previous offer for PeopleSoft had been $24, or $9.2 billion, a price it had insisted was its last and best offer. Oracle announced last month that 61 percent of PeopleSoft's shares had been tendered to it at that lower price.
But PeopleSoft's board had continued to fight the offer, and a drawn out court fight or possible proxy fight loomed to try to close the deal.
The original offer in June 2003 had been for $16 a share, or $5.1 billion. Its offer got as high as $26 a share during the course of the hostile bidding before Monday's announcement.
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