CRM provider PeopleSoft's board of directors yesterday rejected an offer by rival Oracle Corp. to buy out the company's shareholders for $16 per share and called Oracle's takeover attempt hostile and disruptive.
Oracle shocked the CRM industry last week when it offered to buy all outstanding shares of PeopleSoft for $5.1 billion. However, in its recommendation to shareholders, PeopleSoft's board said the transaction would be scrutinized and probably rejected by antitrust watchdogs in the United States and Europe.
The uncertainty surrounding the antitrust review process would hurt PeopleSoft's financial performance, the board said. The board added that Oracle's offer was too low given PeopleSoft's financial performance.
“Oracle's offer seeks to enrich Oracle at the expense of PeopleSoft's stockholders, customers and employees,” PeopleSoft president/CEO Craig Conway said in a statement.
PeopleSoft said it would continue to pursue the acquisition of J.D. Edwards & Company. The acquisition of J.D. Edwards, announced just days before Oracle launched its takeover bid, was in question after Oracle said it would re-evaluate the move after it gained control of PeopleSoft.