Subscribe
About

Oracle expects merger soon

By Iain Scott, ITWeb group consulting editor
Johannesburg, 04 Jan 2005

With Oracle now in control of PeopleSoft, the merger between the erstwhile rivals is expected to go ahead soon after the offer for PeopleSoft shares expires today.

Oracle says PeopleSoft shareholders have tendered about 75% of PeopleSoft stock, giving it control of the company.

The merger will make Oracle the second-largest enterprise application provider after SAP.

Oracle has designated four representatives to join the PeopleSoft board, with two previous PeopleSoft directors remaining on the board until the merger is completed.

PeopleSoft CEO David Duffield resigned last month, after returning to the post in October, replacing Craig Conway.

The initial offering period of Oracle`s tender offer to buy all the shares of PeopleSoft expired on 28 December. The subsequent offering period expires at 8pm New York City time today (3am tomorrow, SA time).

Oracle says in a statement that if at least 90% of PeopleSoft shares are tendered before the expiry, it expects to complete the two-step merger shortly afterwards.

"We are moving forward quickly with the integration planning process and have been pleased by the level of coordination as we combine the two organisations," says Oracle CEO Larry Ellison.

Related stories:
Oracle wins

Share