Is the Oracle-PeopleSoft merger now certain?
Not exactly. PeopleSoft’s board may say Oracle’s $21-per-share offer undervalues the company. Even if Oracle sweetens the offer, PeopleSoft could reject it. If the deal continues as a hostile takeover, Oracle’s next obstacle is PeopleSoft’s “poison pill.” The company is suing PeopleSoft in an effort to revoke the anti-takeover provision. That trial is scheduled for Sept. 27. If it loses that case, Oracle could launch a proxy battle for control of PeopleSoft’s board at the company’s annual shareholder meeting next spring. What about the European Union? Isn’t it still reviewing the deal? Yes. European regulators put their review of the merger on hold, pending a decision from U.S. courts. Although Europe issued a preliminary set of objections to the deal earlier this year, few see regulators there ruling against the deal. For one thing, the Europeans usually agree with American regulators on antitrust cases. In addition, SAP, Oracle’s top competitor, has greater market share in Europe tha
