Sixpipes
11-24-2004, 09:48 AM
You Can't Fool All of the PeopleSoft All of the Time :cool:
http://images.thestreet.com/markets/dumbestgm/22621.jpg
PeopleSoft's Electoral College
How about that majority vote that isn't a majority vote?
We're talking, of course, about Oracle's (ORCL (http://tools.thestreet.com/rmy/quotes.html?pg=qcn&symb=ORCL):Nasdaq - commentary (http://find.thestreet.com/cgi-bin/texis/find/results.html?tkr=ORCL) - research (http://thestreet.multexinvestor.com/reports.aspx?ticker=ORCL)) hostile tender offer to take over rival software company PeopleSoft (PSFT (http://tools.thestreet.com/rmy/quotes.html?pg=qcn&symb=PSFT):Nasdaq - commentary (http://find.thestreet.com/cgi-bin/texis/find/results.html?tkr=PSFT) - research (http://thestreet.multexinvestor.com/reports.aspx?ticker=PSFT)).
Over the weekend, Oracle announced that more than 60% of PeopleSoft shareholders had taken Oracle up on its $24-a-share offer. So how did PeopleSoft respond?
Well, it said that the 61% acceptance rate for the tender offer did not, in fact, represent a majority. "Our Board is convinced that a majority of our stockholders agree that your $24 offer is inadequate and does not reflect PeopleSoft's real value," PeopleSoft said in a statement. "This majority is comprised of stockholders who did not tender their shares, as well as stockholders who tendered but told us that they believe PeopleSoft is worth more than $24 per share." Well, it's great that the board is convinced of all that, but we can't help noticing that 61% there. PeopleSoft seems to be saying that a majority vote can be nullified by whining -- an intriguing theory, but one that we can't say bodes well for corporate governance.
http://images.thestreet.com/markets/dumbestgm/22621.jpg
PeopleSoft's Electoral College
How about that majority vote that isn't a majority vote?
We're talking, of course, about Oracle's (ORCL (http://tools.thestreet.com/rmy/quotes.html?pg=qcn&symb=ORCL):Nasdaq - commentary (http://find.thestreet.com/cgi-bin/texis/find/results.html?tkr=ORCL) - research (http://thestreet.multexinvestor.com/reports.aspx?ticker=ORCL)) hostile tender offer to take over rival software company PeopleSoft (PSFT (http://tools.thestreet.com/rmy/quotes.html?pg=qcn&symb=PSFT):Nasdaq - commentary (http://find.thestreet.com/cgi-bin/texis/find/results.html?tkr=PSFT) - research (http://thestreet.multexinvestor.com/reports.aspx?ticker=PSFT)).
Over the weekend, Oracle announced that more than 60% of PeopleSoft shareholders had taken Oracle up on its $24-a-share offer. So how did PeopleSoft respond?
Well, it said that the 61% acceptance rate for the tender offer did not, in fact, represent a majority. "Our Board is convinced that a majority of our stockholders agree that your $24 offer is inadequate and does not reflect PeopleSoft's real value," PeopleSoft said in a statement. "This majority is comprised of stockholders who did not tender their shares, as well as stockholders who tendered but told us that they believe PeopleSoft is worth more than $24 per share." Well, it's great that the board is convinced of all that, but we can't help noticing that 61% there. PeopleSoft seems to be saying that a majority vote can be nullified by whining -- an intriguing theory, but one that we can't say bodes well for corporate governance.