Updated from 3:17 p.m. EDTOracle's ( ORCL) $5.1 billion offer for PeopleSoft ( PSFT) is a move calculated to take out a dangerous rival, plug a gaping hole in its business and -- inherit a significant revenue stream. The Friday morning offer caught the market by surprise, (some analysts thought it was a joke at first) but when traders got the news they quickly pushed PeopleSoft up more than 23%. PeopleSoft, however, was dismissive. The Pleasanton, Calif. maker of business software said the offer was an attempt to disrupt its just-announced acquisition of J.D. Edwards ( JDEC). A statement from PeopleSoft CEO Craig Conway called the offer "atrociously bad behavior from a company with a history of atrociously bad behavior." Under the law, the company must review Oracle's tender offer and make a recommendation to shareholders. Sounding entirely disnterested in the Oracle deal, PeopleSoft CFO Kevin Parker said his company's directors will meet within the next few days to decide. Parker said that PeopleSoft's interest in JD Edwards is unchanged and the acquistion is moving forward. But Ellison said his company has not yet decided on a course of action concerning JDEC, if the PeopleSoft acquisition goes through. At the close Friday, PeopleSoft was up $2.71, or 18%, to $17.82; JD Edwards added 41 cents, or 3.2% to $13.20, and Oracle was off 28 cents a share, or 2%, to $13.08. "At these prices, this (Oracle's offer) is a take-under," said First Albany analyst Mark Murphy. "It would surprise me if PeopleSoft would sell unless the offer gets better." Ellison made his case in a prepared statement: "The acquisition of PeopleSoft will immediately make Oracle an even more profitable and competitive company. Although we will not be actively selling PeopleSoft products to new customers, we will provide enhanced support for all PeopleSoft products. Furthermore, we will be incorporating the advanced features from the PeopleSoft products into future versions of the Oracle eBusiness Suite." Oracle said its plan would be to launch a cash tender offer for PeopleSoft's shares, which it expects to begin on Monday. Ellison has submitted a letter to PeopleSoft's board of directors in which he expressed a desire to discuss the offer with the company.