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Oracle v. PeopleSoft: A Case Study

30 Pages Posted: 12 Oct 2005  

David Millstone

Independent

Guhan Subramanian

Harvard Business School

Abstract

This case describes Oracle's hostile takeover bid to acquire PeopleSoft, which began with an unsolicited cash tender offer at $16.00 per share in June 2003 and ended with a negotiated deal at $26.50 per share in December 2004. Novel questions of corporate law are raised by the prolonged use of a poison pill against a structurally non-coercive, all-cash, fully-financed offer; as well as PeopleSoft's unprecedented Customer Assurance Program (CAP), which promised PeopleSoft customers between two and five times their money back if Oracle acquired PeopleSoft and then reduced support for PeopleSoft products. This case study will be published as part of a dealmaking symposium in the Harvard Negotiation Law Review, followed by commentaries from practitioners involved in the deal, judges, and academics.

Keywords: Takeovers, Oracle, PeopleSoft, poison pill, takeover defense

JEL Classification: G34, K22, L40, L86

Suggested Citation

Millstone, David and Subramanian, Guhan, Oracle v. PeopleSoft: A Case Study. Harvard Negotiation Law Review, Forthcoming. Available at SSRN: https://ssrn.com/abstract=816006

David Millstone

Independent ( email )

No Address Available

Guhan Subramanian (Contact Author)

Harvard Business School ( email )

Soldiers Field Road
Morgan 270C
Boston, MA 02163
United States
617-495-9784 (Phone)
617-496-7379 (Fax)

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