Subject category:
Strategy and General Management
Published by:
IBS Case Development Center
Length: 8 pages
Data source: Published sources
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https://casecent.re/p/62316
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Abstract
PeopleSoft Inc, the second largest enterprise software provider in the world, had been thwarting the hostile takeover attempt made by the Silicon Valley database giant, Oracle Corporation, since mid-2003. But Oracle has been relentlessly making unsuccessful attempts to take over PeopleSoft. Though its previous takeover attempts failed, on 19 November 2004, Oracle met with some success when a majority of PeopleSoft''s shareholders expressed their support to its offer. Despite the shareholders'' support for the bid, Oracle still has to wait for the approval from the Delaware''s Chancery Court for elimination of the final barrier - the ''Poison Pill'' and the invalidation of the Customer Assurance Programme, provisions inducted by PeopleSoft to prevent the takeover. The case study traces Oracle''s hostile takeover bid efforts, and PeopleSoft''s combat strategies to thwart the bid. The case also presents an insight into the potential advantages and disadvantages to the two companies, their shareholders and customers, in the event of Oracle''s success.
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Abstract
PeopleSoft Inc, the second largest enterprise software provider in the world, had been thwarting the hostile takeover attempt made by the Silicon Valley database giant, Oracle Corporation, since mid-2003. But Oracle has been relentlessly making unsuccessful attempts to take over PeopleSoft. Though its previous takeover attempts failed, on 19 November 2004, Oracle met with some success when a majority of PeopleSoft''s shareholders expressed their support to its offer. Despite the shareholders'' support for the bid, Oracle still has to wait for the approval from the Delaware''s Chancery Court for elimination of the final barrier - the ''Poison Pill'' and the invalidation of the Customer Assurance Programme, provisions inducted by PeopleSoft to prevent the takeover. The case study traces Oracle''s hostile takeover bid efforts, and PeopleSoft''s combat strategies to thwart the bid. The case also presents an insight into the potential advantages and disadvantages to the two companies, their shareholders and customers, in the event of Oracle''s success.