Tuesday, October 05, 2004

PeopleSoft execs sighted at Oracle HQ?

Reuters is now reporting that the new PeopleSoft executives paid a visit to Oracle headquarters last week, increasing speculation that PeopleSoft may be softening its stance against Oracle.
"Our sources indicate to us that the new PeopleSoft management team visited the Oracle campus last week. This indicates to us that (they are) more willing to engage in a dialogue with Oracle to discuss its options," said Prudential Equity Group analyst Brent Thrill in a note to clients.
Further evidence that PeopleSoft's position may be softening came from Steven Goldby's second day on the stand in Oracle's lawsuit to overturn PeopleSoft's poison pill.
The PeopleSoft Inc. director who has been leading the defense of the software company's antitakeover measures said Tuesday the company's board is willing to talk about a deal with rival Oracle Corp.

On the stand for the second day in a Delaware court trial, PeopleSoft director Steven Goldby said German software company SAP AG was the chief beneficiary of the long-running takeover fight between the two companies.

PeopleSoft's board would be willing to talk about an Oracle acquisition now if the price was right and there was a "high certainty" that a deal could close quickly, Goldby said.

An AP article has more details.

Update: Woops. Brent Thill is now backing off his reporting of a meeting between the new PeopleSoft executives and Oracle.
"There's been no management team meeting with Oracle," said PeopleSoft (PSFT) spokesman Steve Swasey.

He responded to questions following a report from analyst Brent Thill with Prudential Equity Group that stated such a meeting did happen. Thill cited "sources" that informed him PeopleSoft's new management team visited the Oracle (ORCL) campus last week. In a follow-up research note issued Tuesday afternoon, Thill said a PeopleSoft senior executive confirmed that no senior management members met with Oracle.
Looks like it was just a rumor.

1 comment:

Raj said...

This is a perfect example of posting a news item without any research or substance. Craig was let go due to optimistic statements - "if we say that we are fine, then people will believe we are fine, even though we are not", but what about this analyst ? Will Brent Thill be fired as a result of this misstatement ?