Oracle's Hostile Takeover of Peoplesoft

Paper Summary:

This paper discusses Oracle's hostile takeover bid for Peoplesoft which was one its main competitors in the enterprise software industry. It provides an overview of Oracle and Peoplesoft, as well as the general industry background. The paper then discusses the benefits of the merger for Oracle, as well as their strategic tactics in the takeover process.

Table of Contents:
Oracle Overview
Peoplesoft Overview (pre Oracle)
Industry Background
Situational Overview
Merger Benefits & Market Perception
Financing Structure of the Takeover
Bid Tactics of Oracle
Conclusion

From the Paper:

"The financing structure of the Oracle takeover bid for PeopleSoft was, on the surface, initially a cash offer because Oracle had such a large pool of cash reserves at the time. The final offer for PeopleSoft was for $26.50 per share which placed PeopleSoft at a market value at the time of $10.3b. This final price that Oracle is paying for PeopleSoft is $2.50 per share more than Oracle's previous final offer which Oracle accomplished through cash and stock offerings for existing PeopleSoft shares tendered by December 10, 2004 in which 120,600,093 shares had been tendered and, according to Oracle, not withdrawn which completed the final acquisition. While most analysts agree that Oracle overpaid for PeopleSoft the benefits and market advantages that the company gained by acquiring PeopleSoft has paid dividends in the mid term because of the new customers the company has acquired as well as the host of other acquisitions that Oracle has undertaken since its PeopleSoft hostile takeover."

Sample of Sources Used:

• Carnevale, Dan. "For Customers of Merged Oracle and PeopleSoft, So Far, So Good." Chronicle of Higher Education, 53/24(2007): A39.
• Gage, Deborah. "Oracle Fusing." Baseline, 55(2006): 26.
• Kline, Andy. "The ERP Life Cycle." eWeek, June 1 (2005). Jun.21, 2007< http://www.eweek.com/article2/0,1759,1822588,00.asp>.
• Lacy, Sarah. "Oracle: Now for the Hard Part." Business Week, 12/16(2005): 19.
• Lacy, Sarah. "Oracle Keeps on Making Deals." Business Week, 11/17(2005): N.

More papers on Oracle's Hostile Takeover of Peoplesoft:

• Research Paper # 107056 : "Hostile Takeover"
• Essay # 33455 : "Hostile Takeovers"
• Research Paper # 130130 : "Hostile Takeovers and Post-Deal Stock Price"

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