Oracle yesterday raised the stakes in the technology industry's biggest takeover battle, throwing a third more cash behind its bid for rival software company PeopleSoft.
The move, which raises the value of the all-cash offer to $9.4 billion (€7.5 billion), was the clearest sign yet that Oracle was intent on emerging victorious from the seven-month battle, according to software industry analysts.
However, the bid has still to win clearance from antitrust regulators in the US and Europe, a task that has looked increasingly questionable as the process has dragged on far longer than expected. Oracle's latest offer, and a recent tactical move by PeopleSoft, means that the takeover fight is set to come to a head before the end of next month.
Oracle revealed yesterday that, under an agreement with the Department of Justice, a regulatory ruling will be issued by March 12th. PeopleSoft last week brought forward its annual shareholder meeting to March 25th, setting up a showdown over the higher bid and Oracle's efforts to have its nominees appointed to the company's board of directors.
Oracle raised its offer for PeopleSoft to $26 a share, up from $19.50. It originally offered $16 a share, a price that was seen by some as a sign that it had no intention of completing its offer and was instead bent on undermining PeopleSoft's business. - (Financial Times Service)
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