PeopleSoft Inc's board of directors said it rejected Oracle Corp's US$9.2 billion takeover bid, continuing its staunch resistance a day after the company's own shareholders tendered more than 60 percent of stock to Oracle.
The board unanimously concluded that Oracle's latest US$24-per-share bid is inadequate, the company said in a statement posted on its Web site Saturday. It marked the sixth time the Pleasanton-based business software company snubbed its bitter rival since the takeover battle nearly a year and a half ago.
"The board reiterated that it will not sell the company for less than it is really worth and that the company's business plan creates superior value for stockholders," PeopleSoft said.
On Friday, PeopleSoft's shareholders tendered 61 percent of the company's stock in support of Oracle's bid. Oracle had threatened to drop its US$24-per-share offer if it didn't receive an endorsement from most PeopleSoft stockholders -- a threat that prompted 228.7 million shares to tender, according to a preliminary tally released late Friday.
PeopleSoft decided to fend off Oracle, saying "numerous conversations we have had with our largest stockholders over the past 10 days" led the board to believe that a majority of stockholders don't think the offer reflects the company's real value.
PeopleSoft's board previously has indicated it will continue to thwart a takeover by triggering a legal defense called a "poison pill."