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Tech heavy hitter likes SchwarzeneggerOracle CEO discusses PeopleSoft, California election
SAN FRANCISCO, California (AP) -- Oracle Corp. remains on the prowl for other takeover prey as it continues to stalk rival PeopleSoft Inc., the business software maker's chairman Larry Ellison told shareholders. Responding to a question at Oracle's annual shareholders' meeting, Ellison acknowledged mulling a bid for struggling computer maker Sun Microsystems Inc. before concluding it would be a bad idea to expand into the hardware business. "I don't think we will acquire Sun or any other hardware company," Ellison said. But Ellison emphasized Oracle's appetite for acquisitions won't be satisfied even it manages to devour PeopleSoft in a proposed deal currently valued at $7.5 billion. "As the industry matures and we grow larger and larger, we will have to grow through a combination of developing new products and buying other companies," Ellison said. He didn't identify any potential candidates. Pleasanton, California-based PeopleSoft has already rejected Oracle's $19.50-per-share offer, which has been put on hold while the U.S. Department of Justice completes an antitrust review of the proposed combination. Oracle expects the government inquiry to be wrapped up in November or December, chief financial officer Jeff Henley told shareholders. With PeopleSoft's stock recently trading above Oracle's bid, analysts believe the offer will have to be raised. Oracle will abandon the bid if PeopleSoft becomes too expensive, Henley stressed. "We need to make sure it's done at the right price so it's a good thing for our business and shareholders," he said. Takeover talk was just one of several topics covered during Oracle's two-hour annual meeting, held at its Redwood Shores annual meeting. Oracle is discussing alternatives to stock options as political pressure mounts for an accounting change that would force companies to expense the popular employee awards, said Michael Boskin, who heads up the company's compensation committee. Boskin, a Stanford University economics professor, didn't provide specifics, other to say other "equity vehicles" are under consideration. Microsoft Corp. made waves earlier this year when it announced it would start giving its employees regular company stock instead of options, which grant the recipient to buy shares at a set price. Oracle had 482 million employee stock options outstanding as of August 31. Had Oracle expensed stock options in its last fiscal year ended in May, the company estimated it would have earned $1.98 billion instead of it reported profit of $2.31 billion. On the political front, Ellison applauded the decision to replace California Gov. Gray Davis with actor Arnold Schwarzenegger. "'Commando' is one of my favorite movies," Ellison said. "I think [Schwarzenegger] is a very smart guy and his [proposed] policies are a substantial improvement over the former governor." Oracle became entwined in a political tempest last year after an audit concluded a $95 million software contract sold to the Davis administration would cost the state $41 million more than if it had stuck with its old software. California signed the contract five days before Oracle submitted a $25,000 campaign contribution to Davis.
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'Commando' is one of my favorite movies. I think [Schwarzenegger] is a very smart guy and his [proposed] policies are a substantial improvement over the former governor.
