Furious PeopleSoft Sue 'Grossly Misleading' Oracle
Oracle Corporation is being sued by PeopleSoft following what the latter described as ‘a sham tender offer aimed at destroying PeopleSoft’s business’. The complaint, filed in Alameda County Superior Court, alleges that Oracle has engaged in ‘unfair business practices, trade libel and tortuous interference’ with PeopleSoft’s customer relationships. According to the suit, Oracle’s true intent in making the tender offer was to undercut PeopleSoft’s business operations by disparaging PeopleSoft’s products, services, and future prospects, undermine PeopleSoft’s viability by creating uncertainty and doubt in the minds of PeopleSoft’s customers and prospective customers, and interfere with PeopleSoft’s plan to merge with J. D. Edwards and Company. PeopleSoft also alleges that Oracle’s accompanying media campaign grossly misleads the market concerning Oracle’s ability to provide continuing support to existing PeopleSoft customers, and fails to disclose the substantial obstacles and costs facing PeopleSoft customers that would need to migrate to an Oracle platform. Regarding the acquisition of J.D. Edwards, both parties have amended the definitive agreement. The amended agreement is designed to allow the two companies to accelerate the completion of the transaction, bring forward the benefits of their combination and increase the accretion to earnings per share for PeopleSoft stockholders.