Oracle increases bid offer and sues PeopleSoft

C|Net | at | by Mike

Oracle has raised its takeover bid for PeopleSoft to $19.50 per share, valuing the software company at $6.3 billion. Oracle also filed suit against PeopleSoft and J.D. Edwards, the application software maker that PeopleSoft has announced plans to acquire. The move is not unexpected; analysts and industry watchers have been saying that Oracle's initial hostile takeover offer of $16 per share, which valued PeopleSoft at $5.1 billion, was surprisingly low.

PeopleSoft's board has formally rejected Oracle's bid and PeopleSoft CEO Craig Conway has sent a letter to PeopleSoft customers that called the Oracle offer "predatory." Earlier this week PeopleSoft sweetened its offer for J.D. Edwards in an attempt to stall the Oracle bid. Last week, J.D. Edwards filed suit against Oracle, saying the takeover bid "tortiously interfered" with its deal with PeopleSoft.