|By Maureen O'Gara||
|November 26, 2003 12:00 AM EST||
Oracle said it was sure once the Justice Department and European Commission had all the information and had mulled it all over that the regulators would give Oracle the green light.
It also said that it serious doubts about of how PeopleSoft is being governed.
Oracle claimed that it had been advised by experts that PeopleSoft couldn't legally book the revenues from contracts that were cut because of PeopleSoft's offer to refund the money anywhere from two to five times over if Oracle buys the company, which, if true, PeopleSoft would find altogether distressing.
Oracle played the refund promise as proof of "management entrenchment" and observed that PeopleSoft has "backtracked" on what would trigger the refund several times, suggesting a certain flightiness.
Among other things, PeopleSoft last week extended the rebate plan until the end of the year.
Oracle and others accuse PeopleSoft of artificially inflating its revenue numbers thanks to this refund scheme. PeopleSoft has also refused to break out the numbers for its recent JD Edwards acquisition, raising suspicions of weakness.
Oracle repeated a remark it's made before about how PeopleSoft experienced a double-digit revenue decline for seven quarters.
Oracle's fallback scheme for acquiring PeopleSoft is to replace PeopleSoft's board next spring. To do that, it has to come up with a slate of proposed directors now, it said. It will seek all four seats that will come up for re-election. It'll come up with some names before the regulators approve the takeover.
Oracle described any acquisition of PeopleSoft as a "medium to small transaction" given Oracle's $65 billion market cap and continued to claim that it would be good for competition and customers alike. Its promise to support PeopleSoft software for the next 10 years was "unprecedented," it said, something even PeopleSoft hasn't vowed.
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