Oracle Expects to Finalize Merger this Week
Updated · Jan 05, 2005
Oracle may be able to start its marriage with PeopleSoft as early as Thursday with the help of a handful of PeopleSoft shareholder converts.
A spokesman for Oracle said executives will issue a statement after markets close today, and noted that the company has likely acquired more than 90 percent of PeopleSoft shares, the number required for an accelerated takeover. The latest offering period expires today at 8 p.m. eastern time.
The company must be feeling confident about wrapping up the 18-month battle. Oracle is beginning to alert customers, analysts and press to a company event on Jan. 18 that will discuss the merger. Oracle has also planned an analyst meeting in New York on Jan. 26th, in order to discuss the integration of the two companies.
However, if Oracle does not meet the 90 percent threshold, it must hold a special shareholder vote on the merger, delaying the deal’s close by about a month.
“There is no question that we have the shares necessary to complete the merger,” Oracle spokesman Bob Wynne told internetnews.com. “If we announce we have 90 percent or more, we can go to Delaware tomorrow and file the paperwork and finalize the deal later this week.”
Wynne said Oracle only needed 51 percent of shares tendered to control PeopleSoft, but has one last extension of four to six weeks available to complete the legal side of the deal.
Already, Oracle has been making moves in preparation for the merger. Sources cited by the Wall Street Journal said Ron Wohl, executive vice president of applications development, and Michael Rocha, executive vice president of global support services, have left their posts.
A source close to the dealings told internetnews.com Wohl would most likely stay on in another department.
Oracle’s Wynne said the company would not comment on the reports, but said an announcement tentatively scheduled for Jan. 14 will outline changes to the management structure and the number of PeopleSoft or Oracle employees being laid off.
In addition to its own incremental changes, Oracle fired PeopleSoft co-president Phillip Wilmington and co-president and CFO Kevin Parker in favor of Oracle co-presidents Safra Catz and Charles Phillips. Oracle’s Harry You will continue to serve as CFO.
PeopleSoft founder Dave Duffield has already resigned
his position as CEO on Dec. 21.
In his last update with the press, Oracle’s Phillips said the
combined company will move quickly to maintain and support customer
accounts as the company will now do battle against ERP market leader SAP
AG as well as the encroaching presence in the mid-market of Microsoft
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