PeopleSoft Extends Its Refund Offer

The company's contentious offer to refund money in the event of an Oracle takeover now runs to year- end.

Author:: Ronna Abramson
Publish date:: Nov 19, 2003 12:43 PM EST

In the latest volley in the battle between

PeopleSoft

(PSFT)

and

Oracle

(ORCL) - Get Report

, PeopleSoft has extended its money-back guarantee program until the end of the year.

PeopleSoft disclosed its extension of its "Customer Assurance Program" in a filing Wednesday with the

Securities and Exchange Commission

. Oracle has said it could be forced to abandon its $7.3 billion hostile takeover bid on PeopleSoft unless a court imposes an injunction on the program, which guarantees huge refunds on software contracts if PeopleSoft is acquired. A hearing on Oracle's injunction request is scheduled Wednesday in Delaware Chancery Court.

A group of angry PeopleSoft shareholders has also sued the company over the guarantees, characterizing them as a "nonredeemable poison pill" that can't be rescinded if the hostile bids wins out.

Shares of PeopleSoft gained 9 cents, or 0.4%, to $20.44, while shares of Oracle were up 14 cents, or 1.2%, to $11.95 in recent trading.