Oracle executive vice president Chuck Phillips indicated Oracle has planned for a proxy fight, believing PeopleSoft’s poison pill defense would only delay, rather than prevent, an officially sanctioned acquisition.
Phillips would not divulge what strategies Oracle has planned. We have a few things up our sleeves, Phillips told press at OracleWorld yesterday.
A fight is expected as Phillips said Oracle would not increase its PeopleSoft bid a second time – Oracle upped its $16 per share price to $19.50 within weeks of announcing the bid. We have a strong offer and it’s a fair price, Phillips said yesterday.
Regulatory approval would the next milestone, Phillips said. Rulings are expected by late November in separate investigations from the US Department of Justice (DoJ) and the European Commission into whether any acquisition is anti-competitive.
If approval is granted, Phillips said PeopleSoft’s poison pill defense would fail to stop the acquisition, meaning the battle turns into a battle for control of management. He voiced confidence Oracle has the support of PeopleSoft’s institutional shareholders to pull-off a proxy battle.
Phillips claimed investors support the deal, because it represents consolidation in the software industry, a step that would help increase their return on investment. The software industry is way over fragmented, Phillips said. Investors want to make money off their investments.
He also claimed Oracle has gained support from PeopleSoft customers it has met. If we can get in front of them [customers] and swing their strategy it’s fine. PeopleSoft has bombarded customers with negative messaging, Phillips said. He was unwilling to say which customers supported a deal, though.
Source: ComputerWire
