Abstract

PeopleSoft's board has decided to fire its Chief Executive Officer (CEO), Craig Conway. The announcement comes on the eve of a trial beginning in Delaware where Oracle is trying to force PeopleSoft to redeem its 'poison pill' anti takeover provision. After Conway's resignation, PeopleSoft's board has named David Duffield, the company's founder and Chairman, as the new CEO. PeopleSoft insists that the move is unrelated to Conway's way of handling Oracle's hostile bid. But media reports indicate the decision was prompted by the board's disenchantment with Conway's handling of the Oracle bid. There is also speculation that the continued deterioration of PeopleSoft's performance has contributed to Conway's dismissal. With the Justice Department and Conway out of the way, Oracle's only impediment to acquiring PeopleSoft seems to be the European Union. This part of the case discusses the events from September 2004 to October 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)