News
News
6/25/2004
04:34 PM
Connect Directly
Twitter
RSS
E-Mail
50%
50%

PeopleSoft Approached Oracle About Merger in 2002, Exec Says

Oracle president Safra Catz testified Friday that PeopleSoft's CEO approached Larry Ellison about a deal a year before Oracle made its hostile bid for PeopleSoft.

Oracle president Safra Catz testified Friday that PeopleSoft CEO Craig Conway proposed a merger between the companies a year before Oracle's hostile takeover bid for its competitor last summer.

Catz, testifying in U.S. District Court in San Francisco in the antitrust lawsuit brought by the Justice Department in an effort to block Oracle's proposed takeover of PeopleSoft, said Conway called Oracle chairman and CEO Larry Ellison to discuss a merger in 2002. Catz said PeopleSoft CFO Kevin Parker contacted her and the two agreed to meet with other representatives of both companies at "a nice hotel in the East Bay." Ron Wohl, an Oracle executive VP, and Cliff Godwin, Oracle's chief application architect, met with PeopleSoft's Parker and Ram Gupta, a technologist.

At the meeting, Parker said a merger would make both companies more competitive with SAP and Siebel Systems Inc. in the business-applications software market, according to Catz.

The Justice Department wants to block Oracle's bid—which PeopleSoft has repeatedly rejected—on the grounds that it would stifle competition in the business apps market. The government argues that there are only three major players in the market for so-called "high-function" application software—Oracle, PeopleSoft, and SAP—and that losing one would raise prices for customers. Oracle argues that other vendors, including Microsoft, belong to the market for high-function apps.

Catz said Parker offered no explanation of why merger talks broke down, other than that PeopleSoft no longer felt the combination was viable.

Comment  | 
Print  | 
More Insights
The Business of Going Digital
The Business of Going Digital
Digital business isn't about changing code; it's about changing what legacy sales, distribution, customer service, and product groups do in the new digital age. It's about bringing big data analytics, mobile, social, marketing automation, cloud computing, and the app economy together to launch new products and services. We're seeing new titles in this digital revolution, new responsibilities, new business models, and major shifts in technology spending.
Register for InformationWeek Newsletters
White Papers
Current Issue
InformationWeek Tech Digest - July 22, 2014
Sophisticated attacks demand real-time risk management and continuous monitoring. Here's how federal agencies are meeting that challenge.
Flash Poll
Video
Slideshows
Twitter Feed
InformationWeek Radio
Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.