The move, while largely expected, pushes the deadline from Monday to midnight July 18 and marks the latest setback for the database maker and its hostile US$6.3 billion bid for PeopleSoft.
Last week, the U.S. Department of Justice issued a second request for information, as part of an antitrust review of Oracle's proposed merger. And, as a result, Oracle postponed its July 16 hearing to address its lawsuit against PeopleSoft, in which it seeks to remove PeopleSoft's "poison pill" and halt its competitor's amended agreement to acquire J.D. Edwards. Meanwhile, PeopleSoft on Wednesday announced preliminary second-quarter results that exceed Wall Street's expectations and helped dispel some concerns its customers would flee amid uncertainty over Oracle's proposed merger.
As of Thursday, 34.7 million PeopleSoft shares had been tendered to Oracle, the database maker said.
"That's less than 11 percent of our shares, and that's obviously low. We're pleased that a great majority of our shareholders have agreed to stay with PeopleSoft," said Steve Swasey, a PeopleSoft spokesman. He declined to comment on the date Oracle chose for the extension.
Companies launching hostile takeover bids will frequently extend the deadline for tendering shares until they amass more than 50 percent of the outstanding shares of the target company.
If the target company has a "poison pill" in place, as does PeopleSoft, the unwanted suitor will use the tendered shares as leverage in pressuring the takeover target to remove its "poison pill." A "poison pill," or shareholder rights plan, makes it cost prohibitive to buy a controlling stake in the target company, when the pill is triggered.
Oracle, which launched its hostile bid in early June at US$16 a share, later increased it to US$19.50 a share to attract investors.
However, despite Oracle raising its bid, investors have been keeping their distance. PeopleSoft's shares have continued to trade below Oracle's increased bid, as investors remain skeptical it will receive approval from antitrust regulators.
Typical. Oracle stirs trouble again.
Its an obvious strategy. If you see the train coming, get off the track!