Oracle Corp. said it may give up its hostile $7.3 billion bid for PeopleSoft Inc. if its target continues to offer refunds on software license fees under any takeover, The Wall Street Journal said on Tuesday.
SOFTWARE MAKER ORACLE asked the Delaware Court of Chancery to speed up action on an injunction against a program under which PeopleSoft has been offering software customers refunds of between two and five times their licensing fees if any acquirer fails to meet certain conditions, according to the paper.
PeopleSoft has said the potential liability, under a revised version of the refund program, was nearly $800 million at the end of the third quarter.
Last week, some PeopleSoft shareholders filed a motion in the same court seeking a preliminary injunction to block the revised program.
In a filing on Monday, Oracle took issue with a provision of PeopleSoft’s revised offer under which the refunds would be triggered by a change in majority control of PeopleSoft’s board, whether the change is the result of an acquisition or a shareholder vote, the paper said.
Under the new program, refunds of between two and five times a customer’s software license fees will be triggered if PeopleSoft is acquired within two years, instead of one year under the original program, and the buyer takes certain actions to reduce product support within four years, rather than two years.
Officials with Oracle could not be reached for comment.
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