Oracle launches surprise bid for its software rival.

Financial News, June, 2003

Larry Ellison, the flamboyant head of software giant Oracle, has launched a surprise $5.1bn ([euro]4.3bn) bid for rival PeopleSoft.

Oracle is offering $16 in cash for each PeopleSoft share, less than PeopleSoft was trading at last week. However, the company's shares closed up $2.71 at $17.82, meaning Oracle may have to increase its offer. The hostile takeover bid comes four days after PeopleSoft announced a merger with JD Edwards, a deal that is now under serious threat.

Takeover deals have been a rarity in the technology sector, so Ellison's bold move is likely to provide a welcome pay day for bankers.