Oracle announced an unsolicited $16 per share cash offer for all outstanding PeopleSoft shares, a small 6% premium over the stock's previous day closing price. PeopleSoft's board of directors formed a transaction committee of independent directors to evaluate the offer. The committee concluded the offer undervalued the company, may face regulatory issues, and could negatively impact PeopleSoft's financial performance. They decided to implement a poison pill and customer assurance plan to prevent Oracle's hostile takeover attempt.

2. TAKEOVER TIMELINE
June 6
• Oracle announces to make a tender offer for all PeopleSoft shares at $16
per share
• Last day’s price - $15.11 per share
June 8,
• Board of directors meeting
• Transaction committee formed of independent directors to evaluate the
offer and decide in shareholders’ best interest
• Discuss customer and market reaction
June 11
• Board decided to pursue two responses to thwart Oracle’s hostile takeover
attempt and improve customer confidence
• --- Poison Pill
• --- Customer Assurance plan

3. TRANSACTION COMMITTEE’S
CONCLUSION
• Undervalued offer – less than 6% premium -
• Long regulatory approval process and combination
might not get approved
• Offer created barriers to company’s success and had
negative impact on its financial performance