Oracle Assumes Control Of PeopleSoft

Oracle has officially taken control of PeopleSoft Inc. after purchasing the 75% of PeopleSoft stock tendered by the application vendor's shareholders, Oracle disclosed early Wednesday.

Oracle designated four representatives to serve on PeopleSoft's board of directors to replace board members who have resigned, including CEO Dave Duffield. Duffield, PeopleSoft's founder and CEO from 1987 to 1999 and again since October, resigned from PeopleSoft Dec. 21. Two other PeopleSoft board members will remain until the merger process is complete, Oracle says.

The new board members are Oracle presidents Charles Phillips and Safra Catz, Oracle CFO Harry You, and Oracle general counsel Dan Cooperman. The remaining PeopleSoft board members are A. George Battle and Steven Goldby.

"We are moving forward quickly with the integration-planning process and have been pleased by the level of coordination as we combine the two organizations," Oracle CEO Larry Ellison said in a statement Oracle issued shortly after 1 a.m. EST Wednesday.

PeopleSoft agreed to be acquired by Oracle Dec. 13 for approximately $10.3 billion after an acrimonious 18-month-long takeover effort.

Oracle's $26.50-per-share offer expired at midnight Tuesday, and Oracle accepted for payment more than 298.8 million shares tendered by stockholders, accounting for 75% of all PeopleSoft shares. Oracle also unveiled a subsequent offering period for all outstanding shares that expires Jan. 4 at 8 p.m. EST.

Oracle is expected to disclose more about its merger plans for PeopleSoft at a conference for financial analysts Jan. 26 in New York.