Group Backs Oracle Bid

An association representing individual stockholders came out against PeopleSoft Inc. last week, requesting that the Department of Justice approve Oracle's proposed $9.4 billion acquisition of PeopleSoft. The nonprofit American Stockholders Association says a no vote will make it "much harder, if not impossible," for economically efficient mergers that might normally gain approval under existing laws to take place. But PeopleSoft counters that its resistance benefits investors. "Oracle's tender offer is not in the best interest of stockholders," a company spokesman says. "It undervalues the company and faces antitrust roadblocks."

Oracle CEO Larry Ellison and CFO Jeff Henley wrote in a letter to PeopleSoft shareholders last week that Oracle's $26-per-share bid is its final offer. They also provided instructions on how stockholders could tender their shares before the March 12 deadline for an acquisition.