Abstract

This is the first of a four-case series. Oracle has made an unsolicited, hostile $7.7 billion bid to acquire rival PeopleSoft. PeopleSoft provides enterprise software for tasks such as accounting, human resources management, and supply chain management. PeopleSoft has made it clear that it wants to remain independent. Oracle faces various legal challenges including antitrust lawsuits filed in seven states by the Justice Department to block the deal. Oracle has decided to challenge the Department. The company feels that the Department''s claim that there are only three vendors that meet the needs of large enterprises is not correct. Despite these mounting legal concerns, Oracle remains steadfast in its commitment to acquire PeopleSoft. This part of the case discusses the events from June 2003 to July 2004.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

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Keywords

Oracle, PeopleSoft, SAP, Business services market, IT industry, Microsoft, Hostile takeover, White knight, European Commission, Justice Department, Merger, Consolidation, JD Edwards, Product line, Customer assurance programme (CAP)