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PeopleSoft backs away from Oracle lawsuit

PeopleSoft Inc. has decided not to begin litigation against Oracle Corp. over the hostile takeover launched by Oracle and cancelled a plan to appear in court Tuesday.

PeopleSoft had earlier informed Oracle that it would seek a temporary restraining order in a California court against Oracle’s attempt to acquire PeopleSoft, Oracle said in a statement.

“We are hopeful that this apparent change in course indicates that the PeopleSoft board will be willing to meet with us to discuss our offer,” Oracle said in its statement.

On Monday, Oracle asked PeopleSoft not to start litigation and to allow discussions to begin between the two companies. [Please see Ellison urges PeopleSoft to give him a fair hearing.]

Oracle has denied that its hostile US$5.1 billion takeover bid for PeopleSoft is an attempt to derail PeopleSoft’s own takeover of J.D. Edwards & Co., announced last week. Instead, the PeopleSoft acquisition will have immediate benefits for Oracle, according to Chairman and Chief Executive Officer Larry Ellison.

“The acquisition of PeopleSoft will immediately make Oracle an even more profitable and competitive company,” Ellison said in a statement.

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