PeopleSoft sues Oracle after all
Source: The Register
PeopleSoft has filed suit against Oracle, saying legal action is the only way to protect its business against a "sham" takeover bid.
The lawsuit filed in Alameda County Superior Court calls for an injunction against Oracle in pursuing its $5.1 billion offer for PeopleSoft. This move contradicts earlier reports from Oracle that PeopleSoft would not pursue a court battle. Such a change of heart is to be expected in what is a very fluid situation between the two companies and PeopleSoft's own acquisition target J.D. Edwards.
"PeopleSoft (Friday) announced that it has sued Oracle to put an end to what it characterizes as a sham tender offer aimed at destroying PeopleSoft's business," the company said in a statement. "According to the suit, Oracle's true intent in making the tender offer was to undercut PeopleSoft's business operations by disparaging PeopleSoft's products, services, and future prospects, undermine PeopleSoft's viability by creating uncertainty and doubt in the minds of PeopleSoft's customers and prospective customers, and interfere with PeopleSoft's plan to merge with J. D. Edwards and Company."
PeopleSoft claims that Oracle has understated the costs customers will face should an acquisition take place between the companies. Oracle is planning to migrate PeopleSoft customers over to its own software products. PeopleSoft's lawsuit follows similar litigation started earlier this week by J.D. Edwards against Oracle.
