PeopleSoft Slams Oracle Nominees

PeopleSoft Inc., fighting a $7.5-billion hostile takeover bid from Oracle Corp., has told shareholders to vote against a slate of directors that Oracle is backing for PeopleSoft’s board.

Oracle Chief Executive Larry Ellison’s “attempt to gain control of PeopleSoft’s board of directors is solely to advance Oracle’s agenda and is not in the best interests of PeopleSoft’s stockholders,” the company said in a statement Saturday. Shareholders will vote on the nominees at PeopleSoft’s annual meeting in May.

Oracle, the No. 3 software maker, after Microsoft Corp. and IBM Corp., said Friday that it also might introduce a stockholder proposal to expand the PeopleSoft board.

Nominating five directors is Oracle’s first step in an effort to take control of the board of Pleasanton, Calif.-based PeopleSoft. Expanding the eight-member board to nine would give Oracle more clout to persuade PeopleSoft shareholders to support Oracle’s $19.50-a-share offer for its main rival in the market for software to handle accounting, payroll and inventory control.

Oracle claims that PeopleSoft’s management hasn’t considered its stockholders’ best interests regarding Oracle’s offer. PeopleSoft’s board has rejected the bid twice and has alleged unfair business practices in a California lawsuit against Redwood City, Calif.-based Oracle.

In Nasdaq trading Monday, Oracle shares dipped 7 cents to $14.47, and PeopleSoft shares rose 42 cents to $22.99.