Oracles Hostile Takeover of PeopleSoft (A) Harvard Case Solution & Analysis

In June 2003, PeopleSoft management announced a merger with JD Edwards. A few hours after Oracle launched a hostile attempt to capture PeopleSoft. Oracle bid raised extremely complex issues for PeopleSoft board, questions about PeopleSoft products will continue to be supported and customers are reluctant to buy PeopleSoft software. The managers were therefore faced with the decision of how to respond to the proposal and the uncertainty it created. To return customers and analysts confidence board PeopleSoft, the adoption of the program for the client in which clients will receive cash payments in the event of a takeover. This promise is for cash payment will not only encourage customers to invest in products PeopleSoft, but also created a liability that may be large enough to thwart attempts absorption Oracle in general. In this regard, the Committee had to consider the impact of customer assurance program for the benefit of the company, its customers, and its responsibilities to shareholders faced with the tender offer. "Hide
by Robert M. Daines, Vinay B. Nair, Davina Drabkin Source: Stanford Graduate School of Business 24 pages. Publication Date: May 30, 2006. Prod. #: CG4A-PDF-ENG

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