Oracle's $5 billion PeopleSoft move

Friday 26 January 2007 21.17

Software giant Oracle, in a surprise move that shook up the tech sector, has announced a $5.1 billion hostile takeover offer for business software maker PeopleSoft.

'The acquisition of PeopleSoft will immediately make Oracle an even more profitable and competitive company,' said Oracle chairman and chief executive Larry Ellison.

The bid was at a 6% premium to PeopleSoft's recent closing price, but the move sent PeopleSoft shares soaring 21%.

Oracle specialises in software for the Internet and e-commerce, as opposed to rival Microsoft, which is stronger in consumer software.

Oracle also said that, based on preliminary results, it would meet or beat analysts' expectation for its fourth quarter results, with earnings per share of 14 to 15 cents.