Oracle Ups Bid for PeopleSoft
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.