Friday officially closed its acquisition of
, purchasing the remaining shares of the
Denver-based software maker in its bid to compete better at the mid-market
Pleasanton, Calif.’s, PeopleSoft, in the midst of the struggle for its life
to fend off a hostile merger attempt by applications rival Oracle
, initially purchased about 110 million shares, or 88 percent of
J.D. Edwards’ shares July 17. On Friday, the company bought the remaining shares
for $7.05 in cash plus 0.43 of a share of PeopleSoft common stock.
Technically, owning 90 percent of a company’s shares means the company is in
the acquirer’s control, but PeopleSoft said in July that the purchase of the
two percent needed to claim title of majority owner was a foregone
conclusion. Analysts agreed.
“It’s not a question of if, but when,” PeopleSoft spokesperson Steve Swasey
said July 18. PeopleSoft “owns the company, we’re in integration mode, which
we formally started this morning.” Fractional shares will be paid in cash.
PeopleSoft President and CEO Craig Conway issued a brief statement about the
“Over the last month we have moved rapidly to integrate the two companies,”
said Conway. “During that time, customer response has been outstanding and
employees have been energized. I am more confident than ever that this
combination will result in enhanced value for shareholders.”
The purchase cements the fact that Oracle’s hostile takeover bid will be
$1.7 billion more expensive than its standing $6.3 billion bid — to digest
the combined PeopleSoft/J.D.Edwards entity. Redwood Shores, Calif. has said
repeatedly that this would not deter it from going forward with its
Oracle has planned its second “town hall” meeting for next week to field
questions from concerned customers. Oracle Executive Vice Presidents Chuck
Phillips and Mike Rocha will host the live event. The meeting will focus on
its planned enhancements to PeopleSoft customer support and elaborate on the
mechanics for a smooth support transition.
PeopleSoft Seals J.D. Edwards Deal