Oracle has added to the pressure on PeopleSoft's Board to accept its takeover bid by naming the directors it plans to install at the company's agm next year.
Four of the company's seven directors will be up for re-election next year and Oracle has said it will put forward its own candidates because it believes "that the current board of PeopleSoft is not acting in the best interests of stockholders and that a large majority of those stockholders are in favour of a change".
PeopleSoft believes differently. It believes "that Oracle has nominated this slate to allow Oracle to purchase PeopleSoft for an inadequate price that does not reflect the Company's real value." Its response was startingly swift, demonstrating just how hyped-up the board is.
Oracle's takeover bid gained a head of steam last week when a majority of PeopleSoft shareholders tendered their shares, but PeopleSoft's board refused to accept it, claiming that the $24 per share price was too low.
With such stubbornness, and with anti-takeover measures still in place, Oracle's best approach to taking over its rival is to install its own people on the board when directors are put up for election at PeopleSoft's annual general meeting, due to take place between March and May next year.
Oracle will be expecting that same majority of shareholders to vote their men in, especially after the PeopleSoft board has appeared to ignore their wishes. By naming them now though, Oracle is transparently attempting to keep the pressure on and force PeopleSoft's Board to wave the white flag.
The people that Oracle hopes will help it get hold of its rival once and for all are: Duke K. Bristow, an economist and director of Arena Pharmaceuticals and Landec; Roger Noall, director of Alleghany; Laurence Paul, managing principal of equity investment firm Laurel Crown Capital; and Artur Raviv, a finance professor at the Kellogg School of Management at Northwestern University.
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