NEW YORK (AFP) - Oracle Corp. said it was prepared to walk away from its bid for rival business software maker PeopleSoft, saying it had learned that its "final" offer was on the verge of being rejected.
The news came days after Oracle upped its bid to 8.8 billion dollars, calling this its "best and final" offer in its 17-month takeover effort.
"Oracle Corporation has learned that PeopleSoft will reject Oracle's 24-dollar a share best and final offer," the Redwood Shores, California firm said.
"The cash tender offer ... will be withdrawn in the event a majority of shares have not been tendered by midnight November 19, 2004."
"There are better uses of our capital including other acquisitions and repurchasing our own shares," said Oracle chief executive Larry Ellison.
"Oracle has been at this for a year and a half and it is now time to bring this matter to a close. On November 19, we will respect the will of the shareholders."
Jeff Henley, Oracle's chairman, added, "PeopleSoft's shareholders now face a very simple decision. They can accept our all-cash 24 dollars per share offer on November 19 or it will be withdrawn.
"We believe our offer represents a substantial premium over PeopleSoft's standalone value now or in the foreseeable future. We leave it to PeopleSoft's shareholders to decide whether PeopleSoft's current management can deliver better shareholder value now, or within any reasonable investment horizon," Henley said.
11/10/2004 - 22:18 GMT - AFP