PeopleSoft shareholders support Oracle

PeopleSoft shareholders support Oracle

PeopleSoft board of directors might not be supporting it, but almost 60% of the shareholders have given their support to the Oracle’s bid to take over PeopleSoft. The controversial acquisition process will move on to a US court in Delaware later this week where PeopleSoft would try to thwart of Oracle’s bid.

And in case of a failure of the resolution in the court, the decision will move on to the PeopleSoft annual general meeting in March next year. A shareholder vote will decide who gets to control the board.

Oracle has another problem in hand. PeopleSoft made a customer-refund pledge to the new customers of their products in case Oracle’s bid is successful. This might lead to Oracle with more liabilities after the take over. Oracle would try to get this pledge removed as well.

While Oracle believes, the takeover would give both companies a combined strength, PeopleSoft doubts the claims claiming both companies will suffer in the medium to short term considering there is no common culture between the two companies.