Oracle Ups Bid for PeopleSoft

The takeover battle heats up as the software giant raises its all-cash offer to $26 a share.
By TSC Staff ,

Oracle

(ORCL) - Get Report

Wednesday stunned investors by raising the price of its all-cash offer for

PeopleSoft

(PSFT)

to $26 per share, valuing the target at about $9.4 billion.

PeopleSoft, which has been resisting Oracle's hostile takeover for months and acquired J.D.Edwards last year, had yet to comment on the new offer.

Oracle said its new offer represents an 18.8% premium over Peoplesoft's closing price of $21.89 on February 3, 2004.

Oracle said it expects a decision "regarding antitrust approval from the Department of Justice prior to March 12, 2004."

The new offer expires at midnight EST Friday, March 12.

Oracle's previous offer price was $19.50 a share. Its original offer in June of last year was $16 a share.

"This is our final price," said Jeff Henley, Oracle's chairman and CFO.

Oracle shares were down 55 cents, or 4%, to $13.36 in premarket trading. Peoplesoft rose $2.16, or almost 10%, to $24.05.

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