Documente Academic
Documente Profesional
Documente Cultură
{\colortbl;
\red0\green0\blue0;
\red255\green255\blue255;
\red255\green0\blue0;
\red0\green255\blue0;
\red0\green0\blue255;
\red0\green255\blue255;
\red255\green0\blue255;
\red255\green255\blue0;
\red0\green0\blue128;
\red0\green128\blue128;
\red0\green128\blue0;
\red128\green0\blue128;
\red128\green0\blue0;
\red128\green128\blue0;
\red128\green128\blue128;
\red192\green192\blue192;
\red170\green170\blue170;
\red85\green85\blue85;
\red37\green37\blue37;
\red119\green119\blue119;
\red214\green214\blue214;
\red0\green114\blue54;
\red254\green254\blue0;
\red255\green255\blue204;
\red255\green204\blue0;
\red238\green238\blue238;
\red203\green203\blue203;
\red245\green245\blue245;
\red102\green102\blue102;
\red190\green190\blue252;
\red187\green187\blue187;
\red240\green248\blue255;
\red127\green127\blue127;
\red229\green243\blue255;
\red179\green218\blue255;
\red20\green93\blue164;
\red102\green0\blue102;
\red153\green255\blue102;
}
{\fonttbl {
\f0 Arial;}{
\f1 Symbol;}{
\f2 Times New Roman;}{
\f3 sans-serif;}{
\f4 georgia;}{
\f5 serif;}
}
{\*\generator Apache XML Graphics RTF Library;}
\fet0 \ftnbj \paperw12240 \paperh15840 \margt1800 \margb1080 \margl1080 \margr10
80 \headery720 \footery720 \itap0 \cols1
\sectd {\header {
{\trowd \itap0 \trleft0
\clpadb60 \clpadfb3 \clpadl400 \clpadfl3 \clbrdrt \clbrdrl \clbrdrr \trql \clver
talb \cellx9380
\intbl
{\ri0 \i0 \fs18 \cf1 \f0 \li0 \qc \b0
{\i0 \fs18 \ul0 \cf1 \strike0 \f0 \b0
}
}
{\ri0 \i0 \fs20 \cf1 \f4 \li0 \qc \b0
{\i0 \fs20 \sa0 \ul0 \cf1 \strike0 \f4 \b0 \sb0
12 Harv. Negot. L. Rev. 1
\par
}
}
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \qc \b0
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \qc \b0
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \qc \b1
{\i0 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \b1 \sb400
Harvard Negotiation Law Review
\par
}
}
}
{\i0 \fs20 \cf1 \f4 \b0
{\i0 \fs20 \cf19 \f4 \chcbpat23 \b1
{\i0 \fs20 \sa0 \ul0 \cf19 \strike0 \f4 \b1 \sb0
Winter
}
}
{\i0 \fs20 \cf1 \f4 \chcbpat2 \b0
}
{\i0 \fs20 \sa0 \ul0 \cf1 \strike0 \f4 \b0 \sb0
}
{\i0 \fs20 \cf19 \f4 \chcbpat23 \b1
{\i0 \fs20 \sa0 \ul0 \cf19 \strike0 \f4 \b1 \sb0
2007
}
}
{\i0 \fs20 \cf1 \f4 \chcbpat2 \b0
\par
}
}
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \qc \b0
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \qc \b0
{\i0 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb200
Article
\par
}
}
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \qc \b0
{\i0 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb0
Oracle v. PeopleSoft
\par
}
}
}
{\ri100 \i0 \fs20 \cf19 \f4 \li100 \qc \b0
{\i0 \fs20 \sa200 \ul0 \cf19 \strike0 \f4 \b0 \sb200
ORACLE V. PEOPLESOFT: A CASE STUDY
\par
}
}
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \qc \b0
{\i0 \fs20 \cf1 \f2 \b0
{\i0 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb0
David Millstone
}
{\i0 \fs16 \cf1 \f2 \b0
{\*\bkmkstart co_footnoteReference_Fd1331276586_ID0E3K}{\*\bkmkend co_footnoteRe
ference_Fd1331276586_ID0E3K}
{\field {\*\fldinst HYPERLINK "#co_footnote_Fd1331276586_1" }{\fldrslt
{\i0 \fs16 \sa0 \ul0 \cf5 \strike0 \f2 \b0 \sb0
d1
}}}
}
}
{\i0 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb0
}
{\i0 \fs20 \cf1 \f2 \b0
{\i0 \fs20 \sa200 \ul0 \cf1 \strike0 \f2 \b0 \sb200
Guhan Subramanian
}
{\i0 \fs16 \cf1 \f2 \b0
{\*\bkmkstart co_footnoteReference_Fdd1331276586_ID0EO}{\*\bkmkend co_footnoteRe
ference_Fdd1331276586_ID0EO}
{\field {\*\fldinst HYPERLINK "#co_footnote_Fdd1331276586_1" }{\fldrslt
{\i0 \fs16 \sa0 \ul0 \cf5 \strike0 \f2 \b0 \sb0
dd1
}}}
\par
}
}
}
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \qc \b0
{\i0 \fs20 \sa200 \ul0 \cf1 \strike0 \f2 \b0 \sb0
Copyright (c) 2007 Harvard Negotiation Law Review; David Millstone; Guhan Subram
anian
\par
}
}
}
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\i0 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb0
\u8220\'3fThere is no possibility of any condition, at any price that PeopleSoft
will be sold to anyone. No possibility.\u8221\'3f
}
{\i0 \fs16 \cf1 \f2 \b0
{\*\bkmkstart co_footnoteReference_F1331276586_ID0EYMA}{\*\bkmkend co_footnoteRe
ference_F1331276586_ID0EYMA}
{\field {\*\fldinst HYPERLINK "#co_footnote_F1331276586_1" }{\fldrslt
{\i0 \fs16 \sa0 \ul0 \cf5 \strike0 \f2 \b0 \sb0
1
}}}
\par
}
}
}
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\i0 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb200
-- Craig Conway, CEO and Director, PeopleSoft
\par
}
}
}
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\i0 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb200
\u8220\'3fWe\rquote ve got this war game in a box. This has all been pre-scripte
d. If they launched on J.D. Edwards, we were going to launch on them.\u8221\'3f
}
{\i0 \fs16 \cf1 \f2 \b0
{\*\bkmkstart co_footnoteReference_F2331276586_ID0E1NA}{\*\bkmkend co_footnoteRe
ference_F2331276586_ID0E1NA}
{\field {\*\fldinst HYPERLINK "#co_footnote_F2331276586_1" }{\fldrslt
{\i0 \fs16 \sa0 \ul0 \cf5 \strike0 \f2 \b0 \sb0
2
}}}
\par
}
}
}
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\i0 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb200
-- Larry Ellison, CEO and Director, Oracle
\par
}
}
}
}
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\*\bkmkstart co_g_ID0EKOAC_1}{\*\bkmkend co_g_ID0EKOAC_1}
{\i0 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb0
It was 7:30 in the morning, Pacific Standard Time, on Monday, June 2, 2003. Orac
le Co-President Safra Catz was on her home exercise bike when the news came acro
ss CNBC: two of her major competitors, PeopleSoft and J.D. Edwards (JDEC), had a
greed to merge. Catz stared at the screen for just a moment, then leapt off her
bike and headed upstairs to her computer. It was true; a deal had been signed ov
er the weekend. Catz\rquote s inbox began to fill with a flurry of reaction. A B
lackBerried message from Joe Reece, Oracle\rquote s banker at Credit Suisse Firs
t Boston (CSFB), suggested they discuss \u8220\'3fwhether it makes sense to stir
the pot on this.\u8221\'3f
}
{\i0 \fs16 \cf1 \f2 \b0
{\*\bkmkstart co_footnoteReference_F3331276586_ID0EKPA}{\*\bkmkend co_footnoteRe
ference_F3331276586_ID0EKPA}
{\field {\*\fldinst HYPERLINK "#co_footnote_F3331276586_1" }{\fldrslt
{\i0 \fs16 \sa0 \ul0 \cf5 \strike0 \f2 \b0 \sb0
3
}}}
}
{\i0 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb0
A junior banker weighed in with a more lengthy analysis. Summaries, statistics,
trading multiples, market color. The financial surgeons of Wall Street\rquote s
most powerful shops were dissecting the deal, probing it for weaknesses, and
}
{\i1 \fs20 \cf22 \f2 \b1
{\*\bkmkstart co_pp_sp_111958_2_1}{\*\bkmkend co_pp_sp_111958_2_1}
{\i1 \fs20 \sa0 \ul0 \cf22 \strike0 \f2 \b1 \sb0
*2
}
}
{\i0 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb200
laying its pathology out for their eminent client. But Catz was cautious. There
was one person she needed to talk to before she let slip the dogs of war.
\par
}
}
}
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\*\bkmkstart co_g_ID0EFAAE_1}{\*\bkmkend co_g_ID0EFAAE_1}
{\i0 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb200
Unsure whether Larry was up yet, she emailed.
\par
}
}
}
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\*\bkmkstart co_g_ID0ERAAE_1}{\*\bkmkend co_g_ID0ERAAE_1}
{\i0 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb200
Subject: PeopleSoft/J.D. Edwards.
\par
}
}
}
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\*\bkmkstart co_g_ID0E4AAE_1}{\*\bkmkend co_g_ID0E4AAE_1}
{\i0 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb200
Body: Now would be the time to launch on PeopleSoft.
\par
}
}
}
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\*\bkmkstart co_g_ID0EJBAE_1}{\*\bkmkend co_g_ID0EJBAE_1}
{\i0 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb200
Thirteen minutes later, at 7:47 am, came Larry\rquote s reply:
\par
}
}
}
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\*\bkmkstart co_g_ID0EVBAE_1}{\*\bkmkend co_g_ID0EVBAE_1}
{\i0 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb200
Subject: RE: PeopleSoft/J.D. Edwards.
\par
}
}
}
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\*\bkmkstart co_g_ID0EBCAE_1}{\*\bkmkend co_g_ID0EBCAE_1}
{\i0 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb200
Body: Just what I was thinking. Where are you?
\par
}
}
}
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\*\bkmkstart co_g_ID0EQCAE_1}{\*\bkmkend co_g_ID0EQCAE_1}
{\i0 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb200
It was going to be a long week.
\par
}
}
}
}
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \qc \b1
{\*\bkmkstart co_g_ID0E3CAE_1}{\*\bkmkend co_g_ID0E3CAE_1}
{\i0 \fs20 \sa200 \ul0 \cf1 \strike0 \f2 \b1 \sb200
Background
\par
}
}
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\*\bkmkstart co_g_ID0EGDAE_1}{\*\bkmkend co_g_ID0EGDAE_1}
{\i0 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb0
Oracle and PeopleSoft competed in the enterprise application software business:
it accounted for approximately 20% of Oracle\rquote s revenues (the remainder wa
s database) and 100% of PeopleSoft\rquote s. Enterprise application software aut
omates business processes, such as purchasing and selling, accounting, and payro
ll. The software is a big-ticket item for most companies, with purchase prices o
ften in six or even seven figures. And after paying the large price tag, a compa
ny will spend as much as ten times the purchase price to install and integrate t
he software into its operations: hiring consultants to tailor and install the so
ftware; training employees in its use; and even changing the way the company doe
s business in order to make the most of the software\rquote s capabilities. Unsu
ccessful installations have brought havoc to companies, ruined quarters, and end
ed careers of IT heads. As a result the decision to buy is not taken lightly, an
d once bought the commitment on both sides is long term.
\par
}
}
}
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\*\bkmkstart co_g_ID0EBEAE_1}{\*\bkmkend co_g_ID0EBEAE_1}
{\i0 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb200
In addition to paying the purchase price and related installation costs, compani
es that buy enterprise application software pay two ongoing maintenance fees to
the vendor. The first fee gives a buyer access to personalized support: the righ
t to call and ask questions, submit problem reports, etc. The second and larger
fee is for software update rights. This second fee gives a buyer access to the l
atest versions of the software, including bug fixes, product enhancements, and u
pdates.
\par
}
}
}
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
years, with titles such as Everyone Else Must Fail: The Unvarnished Truth About
Oracle and Larry Ellison; The Oracle of Oracle: The Story of Volatile CEO Larry
Ellison and the Strategies Behind His Company\rquote s Phenomenal Success; and
The Difference Between God and Larry Ellison: God Doesn\rquote t Think He\rquote
s Larry Ellison.
\par
}
}
}
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\*\bkmkstart co_g_ID0ESHAE_1}{\*\bkmkend co_g_ID0ESHAE_1}
{\i0 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb200
More generously, Ellison had also built a company worth more than $60 billion th
at provided the technology to manage much of the world\rquote s information. By
2003, Oracle had over 41,000 employees and sold products in over 120 countries.
It was the largest employer in the world of CalTech and MIT engineers as well as
the world\rquote s largest employer of Harvard mathematicians. Oracle also had
a highly regarded sales culture that produced, among others, Tom Siebel, the fou
nder and CEO of Siebel Systems, and Craig Conway, the CEO of PeopleSoft. The com
pany\rquote s competitiveness and success in gaining market share earned it a re
putation as a bruising competitor.
\par
}
}
}
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\*\bkmkstart co_g_ID0EKIAE_1}{\*\bkmkend co_g_ID0EKIAE_1}
{\i0 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb0
Historically, Oracle did not grow through acquisition. The company\rquote s bigg
est deal before PeopleSoft was only $150 million. Most others were barely materi
al. Over its first two decades the company had so much organic growth - doubling
in size in some years - that
}
{\i1 \fs20 \cf22 \f2 \b1
{\*\bkmkstart co_pp_sp_111958_4_1}{\*\bkmkend co_pp_sp_111958_4_1}
{\i1 \fs20 \sa0 \ul0 \cf22 \strike0 \f2 \b1 \sb0
*4
}
}
{\i0 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb200
acquisitions were at best an afterthought. Within Oracle the conventional wisdo
m was that integrations required too much management attention when so much grow
th could be achieved just by executing well.
\par
}
}
}
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\*\bkmkstart co_g_ID0EHJAE_1}{\*\bkmkend co_g_ID0EHJAE_1}
{\i0 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb200
All that changed in 2002. Ellison confounded the tech community when he announce
d that the heady days of 100% growth were over. The bubble had burst. The window
of opportunity that had made Ellison and his contemporaries the richest men in
the world was closing. Ellison offered the ultimate Silicon Valley heresy: the i
nformation technology industry was now mature.
\par
}
}
}
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\*\bkmkstart co_g_ID0E6JAE_1}{\*\bkmkend co_g_ID0E6JAE_1}
{\i0 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb0
To Ellison, growth and competitiveness would have to come from consolidation, an
d Ellison wanted to be the consolidator, not the consolidated. That task fell to
Ellison\rquote s right-hand woman, Oracle\rquote s Co-President Safra Catz. Cat
z graduated from the Wharton School and then began law school at the University
of Pennsylvania. She moved to Harvard Law School where she was recruited by the
investment banking firm of Donaldson Lufkin & Jenrette (DLJ).
}
{\i0 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb200
After working for 12 years as a banker at DLJ, where she rose quickly to the le
vel of managing director, she was recruited by Oracle, her client, in April 1999
. By 2004, Catz shared overall operating responsibility for the company with Ell
ison; she also managed its M&A strategy. She was named by the Wall Street Journa
l as one of \u8220\'3f50 Women to Watch\u8221\'3f in American business. She was
also widely rumored to be Ellison\rquote s likely successor, though she publicly
disclaimed any interest in the top job at Oracle.
\par
}
}
}
}
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \qc \b1
{\*\bkmkstart co_g_ID0EALAE_1}{\*\bkmkend co_g_ID0EALAE_1}
{\i0 \fs20 \sa200 \ul0 \cf1 \strike0 \f2 \b1 \sb200
The Prey: PeopleSoft
\par
}
}
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\*\bkmkstart co_g_ID0EKLAE_1}{\*\bkmkend co_g_ID0EKLAE_1}
{\i0 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb0
PeopleSoft was founded in 1987 by David Duffield, a billionaire in his own right
, who still owned 8% of the company when Oracle launched its bid. Duffield was t
he anti-Ellison: a warm, grandfatherly character who kept three dogs and four bi
rds at home and had donated a substantial amount of his fortune to animal rights
organizations. Often appearing in his trademark Hawaiian shirts, Duffield was f
amous for encouraging a supportive, familial culture among \u8220\'3fPeople peop
le,\u8221\'3f the 8,300 employees at his firm where he was known to sign emails
with his initials \u8220\'3fD.A.D.\u8221\'3f PeopleSoft\rquote s first product w
as a human resources offering, and by 2004 it continued to enjoy widespread cust
omer acceptance for its HR products. In addition, PeopleSoft sold financial mana
gement systems, customer relations management software, supply chain management
products, and related consulting services.
\par
}
}
}
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\*\bkmkstart co_g_ID0E6LAE_1}{\*\bkmkend co_g_ID0E6LAE_1}
{\i0 \fs20 \ul0 \cf1 \strike0 \f2 \b0
}
{\i1 \fs20 \cf22 \f2 \b1
}
}
}
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\*\bkmkstart co_g_ID0ELUAE_1}{\*\bkmkend co_g_ID0ELUAE_1}
{\i0 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb0
In any case, there was no meeting of the minds and no more meetings between Orac
le and PeopleSoft. By September 2002, Conway, speaking about Ellison, stated, \u
8220\'3fWhen you alienate everybody, you become someone no one wants to play wit
h.\u8221\'3f
}
{\i0 \fs16 \cf1 \f2 \b0
{\*\bkmkstart co_footnoteReference_F8331276586_ID0E6UA}{\*\bkmkend co_footnoteRe
ference_F8331276586_ID0E6UA}
{\field {\*\fldinst HYPERLINK "#co_footnote_F8331276586_1" }{\fldrslt
{\i0 \fs16 \sa0 \ul0 \cf5 \strike0 \f2 \b0 \sb0
8
}}}
}
{\i0 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb200
It was clear that after a decade-long d\u233\'3ftente, the bad blood between El
lison and Conway had resurfaced.
\par
}
}
}
}
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \qc \b1
{\*\bkmkstart co_g_ID0EIVAE_1}{\*\bkmkend co_g_ID0EIVAE_1}
{\i0 \fs20 \ul0 \cf1 \strike0 \f2 \b1
}
{\i1 \fs20 \cf22 \f2 \b1
{\*\bkmkstart co_pp_sp_111958_7_1}{\*\bkmkend co_pp_sp_111958_7_1}
{\i1 \fs20 \sa0 \ul0 \cf22 \strike0 \f2 \b1 \sb0
*7
}
}
{\i0 \fs20 \sa200 \ul0 \cf1 \strike0 \f2 \b1 \sb200
The Initial Attack
\par
}
}
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\*\bkmkstart co_g_ID0EWVAE_1}{\*\bkmkend co_g_ID0EWVAE_1}
{\i0 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb0
On June 6, 2003, D-Day, Oracle launched its \u8220\'3fwar game in a box.\u8221\'
3f
}
{\i0 \fs16 \cf1 \f2 \b0
{\*\bkmkstart co_footnoteReference_F9331276586_ID0E5VA}{\*\bkmkend co_footnoteRe
ference_F9331276586_ID0E5VA}
{\field {\*\fldinst HYPERLINK "#co_footnote_F9331276586_1" }{\fldrslt
{\i0 \fs16 \sa0 \ul0 \cf5 \strike0 \f2 \b0 \sb0
9
}}}
}
{\i0 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb0
}}}
\par
}
}
}
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\*\bkmkstart co_g_ID0EO2AE_1}{\*\bkmkend co_g_ID0EO2AE_1}
{\i0 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb200
The PeopleSoft board convened to assess the offer on Sunday, June 8, with Conway
, still in Amsterdam, participating via speakerphone. Exhibit 2 provides a list
of the eight PeopleSoft board members (including Michael Maples, who joined the
board from J.D. Edwards just after the bid was launched) along with brief biogra
phies of each. Other than Duffield (who owned 7.6% of PeopleSoft) and Conway (wh
o owned 1.4%), the remaining six directors collectively owned 1.5% of the stock
- typical for a company of PeopleSoft\rquote s size.
\par
}
}
}
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\*\bkmkstart co_g_ID0EA3AE_1}{\*\bkmkend co_g_ID0EA3AE_1}
{\i0 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb200
Conway quickly turned the meeting over to Andrew Bogen of Gibson Dunn & Crutcher
, PeopleSoft\rquote s outside legal counsel. Bogen, a highly experienced M&A law
yer, briefed the board on its responsibilities under Delaware law in the face of
a hostile offer. Delaware law requires board members, as fiduciaries of the com
pany, to dispassionately and carefully evaluate any bona fide offer. According t
o Bogen, Conway\rquote s immediate dismissal of the offer, and his stated unwill
ingness to consider any offer, could be construed as violations of the board\rqu
ote s fiduciary duties. In order to distance the company from those comments, Bo
gen recommended that the board establish a \u8220\'3fTransaction Committee,\u822
1\'3f comprised solely of independent directors, to evaluate and respond to Orac
le\rquote s offer.
\par
}
}
}
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\*\bkmkstart co_g_ID0EY3AE_1}{\*\bkmkend co_g_ID0EY3AE_1}
{\i0 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb0
The majority view was that Conway\rquote s rhetoric was troubling and needed to
be toned down. The board adopted Bogen\rquote s recommendation to form a Transac
tion Committee, with Skip Battle as the chair. Battle was an independent directo
r at PeopleSoft who had considerable experience in difficult business situations
: when the dot-com start-up venture AskJeeves nearly went bust in 2000, Battle,
an early-stage investor, stepped in and engineered a turn-around that eventually
led to the sale of AskJeeves to Barry Diller\rquote s IAC in 2005. The other me
mbers of the Transaction Committee were the other independent directors: Frank F
anzilli, Steven Goldby, Cyril Yansouni,
}
{\i1 \fs20 \cf22 \f2 \b1
{\*\bkmkstart co_pp_sp_111958_9_1}{\*\bkmkend co_pp_sp_111958_9_1}
{\i1 \fs20 \sa0 \ul0 \cf22 \strike0 \f2 \b1 \sb0
*9
}
}
{\i0 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb200
}
}
}
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\*\bkmkstart co_g_ID0E36AE_1}{\*\bkmkend co_g_ID0E36AE_1}
{\i0 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb200
Hostile bids are always disruptive, but for industry-specific reasons that both
PeopleSoft and Oracle understood, Oracle\rquote s bid was a particularly serious
threat to PeopleSoft. PeopleSoft\rquote s customers, like Oracle\rquote s, do n
ot simply purchase software the way one might purchase a word processor or a vid
eo game. They are purchasing a relationship with the vendor. Anything that is pe
rceived to threaten that relationship in the long term will impair business in t
he short term. This feature of the enterprise application software business deri
ves from the longevity of the software (typically five years or more) and the en
ormous costs of adopting and implementing the software. If PeopleSoft\rquote s c
ustomers believed a victorious Oracle would discontinue support for the products
at some point in the future, they would stop purchasing products right now. Bat
tle described the dilemma that would consume the PeopleSoft board for the next 1
8 months:
\par
}
}
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\i0 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb0
When people buy these large-ticket enterprise software licenses, they buy it on
the basis of features, they buy it on the basis of support, and they buy it on t
he basis of company viability. By the time we had gotten together on Sunday, Ora
cle had already made some statements that said \u8220\'3fWe\rquote re not going
to actively
}
{\i1 \fs20 \cf22 \f2 \b1
{\*\bkmkstart co_pp_sp_111958_10_1}{\*\bkmkend co_pp_sp_111958_10_1}
{\i1 \fs20 \sa0 \ul0 \cf22 \strike0 \f2 \b1 \sb0
*10
}
}
{\i0 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb0
market PeopleSoft software.\u8221\'3f And the analysts,
}
{\i0 \fs16 \cf1 \f2 \b0
{\*\bkmkstart co_footnoteReference_F15331276586_ID0EVB}{\*\bkmkend co_footnoteRe
ference_F15331276586_ID0EVB}
{\field {\*\fldinst HYPERLINK "#co_footnote_F15331276586_1" }{\fldrslt
{\i0 \fs16 \sa0 \ul0 \cf5 \strike0 \f2 \b0 \sb0
15
}}}
}
{\i0 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb200
Gartner and others, had come out with some statements that said, \u8220\'3fDon\
rquote t buy until you see where this is going to go.\u8221\'3f So anything that
we do to get in the way of license sales is going to hurt shareholder value. Th
at drove us for 18 months. The Delaware courts hate comments like the one that C
onway made about \u8220\'3fWe\rquote ll never sell to those guys.\u8221\'3f But
our customers and prospects don\rquote t hate it. We had something like twenty-t
hree or twenty-four days to the end of the quarter. Seventy percent of license d
eals come in the last three days. So the first thing we\rquote re saying is: \u8
220\'3fHow are we going to keep this company together?\u8221\'3f The headline is
\u8220\'3fOracle Launches Hostile Takeover.\u8221\'3f If the headline on the 2n
}
{\i1 \fs20 \cf22 \f2 \b1
{\*\bkmkstart co_pp_sp_111958_11_1}{\*\bkmkend co_pp_sp_111958_11_1}
{\i1 \fs20 \sa0 \ul0 \cf22 \strike0 \f2 \b1 \sb0
*11
}
}
{\i0 \fs20 \sa50 \ul0 \cf1 \strike0 \f2 \b0 \sb50
future prospects, all under the guise of a disingenuous tender offer.
}
{\i0 \fs16 \cf1 \f2 \b0
{\*\bkmkstart co_footnoteReference_F17331276586_ID0EUG}{\*\bkmkend co_footnoteRe
ference_F17331276586_ID0EUG}
{\field {\*\fldinst HYPERLINK "#co_footnote_F17331276586_1" }{\fldrslt
{\i0 \fs16 \sa0 \ul0 \cf5 \strike0 \f2 \b0 \sb0
17
}}}
\par
}
}
}
}
}
}
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\*\bkmkstart co_g_ID0E5GAG_1}{\*\bkmkend co_g_ID0E5GAG_1}
{\i0 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb0
PeopleSoft\rquote s story gained traction from outside commentators on the deal.
A Barron\rquote s article dated June 9 stated that analysts and investment bank
ers \u8220\'3fseem to agree that Ellison is not terribly serious about buying Pe
opleSoft,\u8221\'3f but \u8220\'3fby making a run at the company through an offe
r that was market value in cash, Ellison at the very least can create confusion,
uncertainty and chaos among the customers and employees of both PeopleSoft and
J.D. Edwards.\u8221\'3f
}
{\i0 \fs16 \cf1 \f2 \b0
{\*\bkmkstart co_footnoteReference_F18331276586_ID0E2H}{\*\bkmkend co_footnoteRe
ference_F18331276586_ID0E2H}
{\field {\*\fldinst HYPERLINK "#co_footnote_F18331276586_1" }{\fldrslt
{\i0 \fs16 \sa0 \ul0 \cf5 \strike0 \f2 \b0 \sb0
18
}}}
}
{\i0 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb200
A hedge fund partner was quoted as saying: \u8220\'3fThis isn\rquote t a takeov
er; it\rquote s a hostage-taking.\u8221\'3f
}
{\i0 \fs16 \cf1 \f2 \b0
{\*\bkmkstart co_footnoteReference_F19331276586_ID0EII}{\*\bkmkend co_footnoteRe
ference_F19331276586_ID0EII}
{\field {\*\fldinst HYPERLINK "#co_footnote_F19331276586_1" }{\fldrslt
{\i0 \fs16 \sa0 \ul0 \cf5 \strike0 \f2 \b0 \sb0
19
}}}
\par
}
}
}
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
}
{\i1 \fs20 \cf22 \f2 \b1
{\*\bkmkstart co_pp_sp_111958_12_1}{\*\bkmkend co_pp_sp_111958_12_1}
{\i1 \fs20 \sa0 \ul0 \cf22 \strike0 \f2 \b1 \sb0
*12
}
}
{\i0 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb200
the press) picked up on Larry/Oracle\rquote s initial misstep and took full adv
antage to the point where it was widely believed Larry said more than he actuall
y did.
}
{\i0 \fs16 \cf1 \f2 \b0
{\*\bkmkstart co_footnoteReference_F22331276586_ID0EXL}{\*\bkmkend co_footnoteRe
ference_F22331276586_ID0EXL}
{\field {\*\fldinst HYPERLINK "#co_footnote_F22331276586_1" }{\fldrslt
{\i0 \fs16 \sa0 \ul0 \cf5 \strike0 \f2 \b0 \sb0
22
}}}
\par
}
}
}
}
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\*\bkmkstart co_g_ID0EBMAG_1}{\*\bkmkend co_g_ID0EBMAG_1}
{\i0 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb200
Oracle may have been pledging support, but no one heard them in the din of accus
ations. Catz noted:
\par
}
}
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\i0 \fs20 \sa50 \ul0 \cf1 \strike0 \f2 \b0 \sb250
We\rquote re saying \u8220\'3fthe sky is blue\u8221\'3f and they are claiming th
at we said the sky is black. And I have it written in transcripts - in transcrip
ts - that we said that the sky was blue. And we could not get the message out. W
e were extremely frustrated because we could not get the truth out. And it was j
ust the most frustrating experience when you\rquote re telling the truth and the
truth does not come out.
\par
}
}
}
}
}
}
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\*\bkmkstart co_g_ID0ELNAG_1}{\*\bkmkend co_g_ID0ELNAG_1}
{\i0 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb0
\u8220\'3fThis is the most heavily PR\rquote ed case that I have ever been invol
ved in,\u8221\'3f
}
{\i0 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb200
said one experienced dealmaker close to Oracle. He added, \u8220\'3fIf you look
ference_F25331276586_ID0EGT}
{\field {\*\fldinst HYPERLINK "#co_footnote_F25331276586_1" }{\fldrslt
{\i0 \fs16 \sa0 \ul0 \cf5 \strike0 \f2 \b0 \sb0
25
}}}
}
{\i0 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb0
Notwithstanding the sweeping language in Time, the Delaware courts have repeate
dly noted that the ability to maintain a pill is not unlimited; rather, courts w
ill scrutinize the decision to keep a pill under the \u8220\'3fintermediate\u822
1\'3f standard of review set out in Unocal v. Mesa Petroleum.
}
{\i0 \fs16 \cf1 \f2 \b0
{\*\bkmkstart co_footnoteReference_F26331276586_ID0ELT}{\*\bkmkend co_footnoteRe
ference_F26331276586_ID0ELT}
{\field {\*\fldinst HYPERLINK "#co_footnote_F26331276586_1" }{\fldrslt
{\i0 \fs16 \sa0 \ul0 \cf5 \strike0 \f2 \b0 \sb0
26
}}}
}
{\i0 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb0
The Unocal test has two parts: first, the target board must demonstrate that th
e hostile bid presents a \u8220\'3fthreat\u8221\'3f to the corporation; and seco
nd, the target board must demonstrate that its defensive response was \u8220\'3f
reasonable in relation to the threat posed.\u8221\'3f
}
{\i0 \fs16 \cf1 \f2 \b0
{\*\bkmkstart co_footnoteReference_F27331276586_ID0EZT}{\*\bkmkend co_footnoteRe
ference_F27331276586_ID0EZT}
{\field {\*\fldinst HYPERLINK "#co_footnote_F27331276586_1" }{\fldrslt
{\i0 \fs16 \sa0 \ul0 \cf5 \strike0 \f2 \b0 \sb0
27
}}}
}
{\i0 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb200
Although the Unocal test has been characterized as \u8220\'3fenhanced\u8221\'3f
judicial scrutiny (in contrast to the extremely deferential \u8220\'3fbusiness
judgment review\u8221\'3f), no Delaware court since Time has required a target b
oard to eliminate (\u8220\'3fredeem\u8221\'3f) its poison pill under Unocal\rquo
te s two-part test.
\par
}
}
}
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\*\bkmkstart co_g_ID0ECUAG_1}{\*\bkmkend co_g_ID0ECUAG_1}
{\i0 \fs20 \ul0 \cf1 \strike0 \f2 \b0
}
{\i1 \fs20 \cf22 \f2 \b1
{\*\bkmkstart co_pp_sp_111958_14_1}{\*\bkmkend co_pp_sp_111958_14_1}
{\i1 \fs20 \sa0 \ul0 \cf22 \strike0 \f2 \b1 \sb0
*14
}
}
{\i0 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb200
In addition to its poison pill, which was already in place when Oracle launched
its bid, PeopleSoft rapidly erected four other defenses over the next two month
s:
\par
}
}
}
}
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\ri0 \i0 \ql \fs20 \cf1 \f2 \li0 \b1
{\*\bkmkstart co_g_ID0ESUAG_1}{\*\bkmkend co_g_ID0ESUAG_1}
{\i0 \fs20 \sa200 \ul0 \cf1 \strike0 \f2 \b1 \sb200
Bulking Up: The JDEC Deal Re-Cut and Re-Spun
\par
}
}
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\*\bkmkstart co_g_ID0E3UAG_1}{\*\bkmkend co_g_ID0E3UAG_1}
{\i0 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb0
The Oracle offer had immediate consequences for PeopleSoft\rquote s pending acqu
isition of J.D. Edwards. Because PeopleSoft would be required to issue a signifi
cant number of new shares to acquire JDEC, a shareholder vote was required by st
ock exchange listing rules. Oracle wanted PeopleSoft shareholders to vote no in
order to signal that they preferred the $16 cash offer. For PeopleSoft, closing
the JDEC deal would increase the size of the prospective deal for Oracle by almo
st 30%, and would force Oracle to acquire an additional company it might not be
interested in (at least at the price it was prepared to pay for PeopleSoft).
\par
}
}
}
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\*\bkmkstart co_g_ID0ERVAG_1}{\*\bkmkend co_g_ID0ERVAG_1}
{\i0 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb200
On June 16, PeopleSoft amended the terms of its merger agreement to include sign
ificant cash consideration, thereby avoiding the shareholder vote. Although it t
hwarted shareholders who might have opposed the deal, this move was part of the
standard defense playbook and legally unremarkable. What raised eyebrows was Peo
pleSoft\rquote s second announcement that day: expected synergies from the deal
had been revised upward, from $85 million on May 31st, to $167 million just two
weeks later (and one week after the Oracle bid), on June 11th. According to a ba
nker present at the June 11th meeting, no board member questioned the revisions.
PeopleSoft directors later testified that management had always expected $150-$
200 million in synergies, but a lower number had been used initially in order to
be conservative.
\par
}
}
}
}
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\ri0 \i0 \ql \fs20 \cf1 \f2 \li0 \b1
{\*\bkmkstart co_g_ID0EJWAG_1}{\*\bkmkend co_g_ID0EJWAG_1}
{\i0 \fs20 \sa200 \ul0 \cf1 \strike0 \f2 \b1 \sb200
Golden and Tin Parachutes
\par
}
}
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\*\bkmkstart co_g_ID0ETWAG_1}{\*\bkmkend co_g_ID0ETWAG_1}
{\i0 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb0
In August 2003, two months after the initial offer, PeopleSoft\rquote s board ap
proved amendments to its severance policies to provide large cash payments to se
nior executives (so called \u8220\'3fgolden parachutes\u8221\'3f) in the event o
f a change of control. Consistent with PeopleSoft\rquote s egalitarian spirit, t
he program was expanded to cover all employees (the somewhat sarcastically named
\u8220\'3ftin parachutes\u8221\'3f). In view of Oracle\rquote s announced expec
tations regarding staff reductions, the cost of the new severance packages was e
stimated at $200 million.
\par
}
}
}
}
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\ri0 \i0 \ql \fs20 \cf1 \f2 \li0 \b1
{\*\bkmkstart co_g_ID0EFXAG_1}{\*\bkmkend co_g_ID0EFXAG_1}
{\i0 \fs20 \ul0 \cf1 \strike0 \f2 \b1
}
{\i1 \fs20 \cf22 \f2 \b1
{\*\bkmkstart co_pp_sp_111958_15_1}{\*\bkmkend co_pp_sp_111958_15_1}
{\i1 \fs20 \sa0 \ul0 \cf22 \strike0 \f2 \b1 \sb0
*15
}
}
{\i0 \fs20 \sa200 \ul0 \cf1 \strike0 \f2 \b1 \sb200
Antitrust
\par
}
}
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\*\bkmkstart co_g_ID0ETXAG_1}{\*\bkmkend co_g_ID0ETXAG_1}
{\i0 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb0
In any proposed merger or acquisition larger than $50 million, the Department of
Justice (DOJ) (or in some cases the Federal Trade Commission) must determine wh
ether the deal is anticompetitive. Under the Hart-Scott-Rodino Antitrust Improve
ments Act of 1976, the first review is perfunctory, while the \u8220\'3fsecond r
equest,\u8221\'3f if it is demanded, is long, data-intensive, and thorough.
}
{\i0 \fs16 \cf1 \f2 \b0
{\*\bkmkstart co_footnoteReference_F28331276586_ID0E5X}{\*\bkmkend co_footnoteRe
ference_F28331276586_ID0E5X}
{\field {\*\fldinst HYPERLINK "#co_footnote_F28331276586_1" }{\fldrslt
{\i0 \fs16 \sa0 \ul0 \cf5 \strike0 \f2 \b0 \sb0
28
}}}
}
{\i0 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb0
If the DOJ concludes that the deal is anticompetitive, it can sue to block the
transaction or negotiate with the parties to obtain divestment of certain assets
after the consummation of the deal.
\par
}
}
}
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\*\bkmkstart co_g_ID0EHYAG_1}{\*\bkmkend co_g_ID0EHYAG_1}
{\i0 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb200
During the review process, private parties can lobby the DOJ to try to influence
its decision. In the days immediately following the Oracle bid, PeopleSoft laun
ched a massive campaign to encourage the DOJ to block. According to Skip Battle,
pushing for antitrust review was \u8220\'3fthe biggest decision we made in the
whole process.\u8221\'3f The difficulty stemmed from the one-way nature of the d
ecision: once PeopleSoft claimed that the deal was anticompetitive, it lost any
ability to reverse itself and later support the deal. In contrast, the poison pi
ll, though potent, could always be revoked by a target board.
\par
}
}
}
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\*\bkmkstart co_g_ID0EIZAG_1}{\*\bkmkend co_g_ID0EIZAG_1}
{\i0 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb0
Antitrust dominated PeopleSoft\rquote s second board meeting after the Oracle bi
d, on Tuesday, June 10th. Gibson Dunn cautioned against too public an antitrust
campaign, arguing that it could backfire and give Oracle an argument in the Dela
ware courts that PeopleSoft was not open to a deal.
}
{\i0 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb0
Conway saw antitrust as a silver bullet. At one point he told the board: \u8220
\'3fWe will keep or lose the company immediately following the Justice Departmen
t decision . . . the rest is completely and only a matter of money, which we do
not control.\u8221\'3f
}
{\i0 \fs16 \cf1 \f2 \b0
{\*\bkmkstart co_footnoteReference_F29331276586_ID0EC1}{\*\bkmkend co_footnoteRe
ference_F29331276586_ID0EC1}
{\field {\*\fldinst HYPERLINK "#co_footnote_F29331276586_1" }{\fldrslt
{\i0 \fs16 \sa0 \ul0 \cf5 \strike0 \f2 \b0 \sb0
29
}}}
}
{\i0 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb200
Battle felt it was a close call, but ultimately came to support an antitrust ca
mpaign:
\par
}
}
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\i0 \fs20 \sa50 \ul0 \cf1 \strike0 \f2 \b0 \sb50
We believed that there was no way this thing would be approved without a second
request. You go from three to two [competitors in the enterprise applications ma
rket], it seems pretty obvious. And so we knew that this deal was going to be hu
ng up in multiple levels of antitrust review. Our lawyers were completely convin
ced that this would require a second request, and they believed that there was a
substantial likelihood that the government would move to block.
\par
}
}
}
}
}
}
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
*18
}
}
{\i0 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb200
assurance program require an acquisition by an entity other than PeopleSoft; th
erefore no action taken unilaterally by PeopleSoft would, by itself, result in t
he recognition of a contingent liability.\u8221\'3f
}
{\i0 \fs16 \cf1 \f2 \b0
{\*\bkmkstart co_footnoteReference_F33331276586_ID0EPC}{\*\bkmkend co_footnoteRe
ference_F33331276586_ID0EPC}
{\field {\*\fldinst HYPERLINK "#co_footnote_F33331276586_1" }{\fldrslt
{\i0 \fs16 \sa0 \ul0 \cf5 \strike0 \f2 \b0 \sb0
33
}}}
\par
}
}
}
}
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\*\bkmkstart co_g_ID0EZCBG_1}{\*\bkmkend co_g_ID0EZCBG_1}
{\i0 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb200
In short, the CAP was the perfect defense, a win-win for both PeopleSoft and its
customers. At a conference held at Tulane Law School while the CAP was being li
tigated, Steven Koch, head of global M&A at CSFB, told Vice Chancellor Leo Strin
e who would eventually hear the case: \u8220\'3fIf this [the CAP] is legitimate,
I\rquote m going to start running around pitching these contracts to all my cli
ents.\u8221\'3f
}
{\i0 \fs16 \cf1 \f2 \b0
{\*\bkmkstart co_footnoteReference_F34331276586_ID0EMD}{\*\bkmkend co_footnoteRe
ference_F34331276586_ID0EMD}
{\field {\*\fldinst HYPERLINK "#co_footnote_F34331276586_1" }{\fldrslt
{\i0 \fs16 \sa0 \ul0 \cf5 \strike0 \f2 \b0 \sb0
34
}}}
\par
}
}
}
}
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \qc \b1
{\*\bkmkstart co_g_ID0ETDBG_1}{\*\bkmkend co_g_ID0ETDBG_1}
{\i0 \fs20 \sa200 \ul0 \cf1 \strike0 \f2 \b1 \sb200
Oracle Turns to Shareholders
\par
}
}
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\*\bkmkstart co_g_ID0E4DBG_1}{\*\bkmkend co_g_ID0E4DBG_1}
{\i0 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb0
All of these defenses were arrayed against Oracle by the end of the summer 2003.
Oracle could not buy the company directly through a tender offer. And, as Catz
recalls, PeopleSoft was steadfast in its unwillingness to negotiate:
\par
}
}
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\i0 \fs20 \sa50 \ul0 \cf1 \strike0 \f2 \b0 \sb250
There was just absolutely no interest [in negotiating]. There was no one on thei
r side to talk to. We were always open to talking. We had an offer on the table.
And they just absolutely wouldn\rquote t talk to us about anything. And they we
ren\rquote t interested in any information from us. Literally, there was no one
to talk to on their side. . . . They were absolutely resolute it would happen ov
er their dead bodies.
\par
}
}
}
}
}
}
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\*\bkmkstart co_g_ID0EQFBG_1}{\*\bkmkend co_g_ID0EQFBG_1}
{\i0 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb0
PeopleSoft\rquote s directors felt they had reasons for not coming to the table.
They were unconvinced that Oracle actually wanted a deal. If this were a scheme
to damage their business, then negotiating would play right into Oracle\rquote
s hand: PeopleSoft and Oracle would have a duty to amend their Schedules TO and
14D-9 indicating that negotiations were underway, but Oracle could then take an
unreasonable position in the negotiations. Or PeopleSoft might make progress wit
h Oracle, then be blocked by the Department of Justice.
}
{\i0 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb200
PeopleSoft\rquote s customers would fear for the company\rquote s long-term via
bility and abandon purchases. There were just too many scenarios in which People
Soft got jilted at the altar.
\par
}
}
}
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\*\bkmkstart co_g_ID0ELGBG_1}{\*\bkmkend co_g_ID0ELGBG_1}
{\i0 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb0
Also diminishing the chances of a negotiated solution was the growing level of d
istrust and animosity. PeopleSoft was convinced that it was fighting for its lif
e. For its employees, the prospect of mass layoffs loomed large. If PeopleSoft f
altered in one quarter, there might not be another to make it up. PeopleSoft and
Oracle
}
{\i1 \fs20 \cf22 \f2 \b1
{\*\bkmkstart co_pp_sp_111958_19_1}{\*\bkmkend co_pp_sp_111958_19_1}
{\i1 \fs20 \sa0 \ul0 \cf22 \strike0 \f2 \b1 \sb0
*19
}
}
{\i0 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb200
salespeople sparred every day over prospective accounts. Battle remembers it as
a streetfight: \u8220\'3fOracle salespeople were saying in pitches that you can
\rquote t buy PeopleSoft software; \u8216\'3fThey\rquote re going to be dead. Th
ey\rquote re gone. They\rquote re history. You shouldn\rquote t be buying it. Do
\par
}
}
}
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\*\bkmkstart co_g_ID0EKKBG_1}{\*\bkmkend co_g_ID0EKKBG_1}
{\i0 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb200
Having no one at PeopleSoft to negotiate with, Oracle turned to shareholders. In
November 2003, Oracle nominated five candidates to stand for election to the Pe
opleSoft board of directors, and proposed a bylaw change that would expand the b
oard by one seat from eight to nine. Because shareholders could effectively pass
the bylaw amendment and fill the seat in one meeting, the contest offered Oracl
e the opportunity to take control of PeopleSoft by electing a majority of its di
rectors at its annual meeting on March 25, 2004.
\par
}
}
}
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\*\bkmkstart co_g_ID0E3KBG_1}{\*\bkmkend co_g_ID0E3KBG_1}
{\i0 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb0
To rally support for its nominees, Oracle raised its offer to $26.00 per share i
n cash on February 4, a 63% increase over the initial bid and $9.4 billion in to
tal value. Oracle declared in its press release, \u8220\'3fThis is our final pri
ce. We urge PeopleSoft\rquote s directors to seriously consider our offer and pu
t the interests of their stockholders first.\u8221\'3f
}
{\i0 \fs16 \cf1 \f2 \b0
{\*\bkmkstart co_footnoteReference_F38331276586_ID0ETL}{\*\bkmkend co_footnoteRe
ference_F38331276586_ID0ETL}
{\field {\*\fldinst HYPERLINK "#co_footnote_F38331276586_1" }{\fldrslt
{\i0 \fs16 \sa0 \ul0 \cf5 \strike0 \f2 \b0 \sb0
38
}}}
}
{\i0 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb200
But Oracle did not yet have a clean shot. The Department of Justice would short
ly announce whether it intended to block the transaction on antitrust grounds. C
atz explained:
\par
}
}
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\i0 \fs20 \ul0 \cf1 \strike0 \f2 \b0
}
{\i1 \fs20 \cf22 \f2 \b1
{\*\bkmkstart co_pp_sp_111958_20_1}{\*\bkmkend co_pp_sp_111958_20_1}
{\i1 \fs20 \sa0 \ul0 \cf22 \strike0 \f2 \b1 \sb0
*20
}
}
{\i0 \fs20 \sa50 \ul0 \cf1 \strike0 \f2 \b0 \sb250
We had thought that at the antitrust division . . . cooler heads would prevail,
and that [PeopleSoft] itself would be impacted by an extremely generous offer f
or their shares, and this showed our seriousness about it. We just did not think
the Department of Justice was going to block us. Because I knew the market very
, very well, and I knew it was painfully competitive. And the concept that Peopl
eSoft was actually a price leader, meaning the lowest price, was just absurd.
\par
}
}
}
}
}
}
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\*\bkmkstart co_g_ID0E5MBG_1}{\*\bkmkend co_g_ID0E5MBG_1}
{\i0 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb0
So we didn\rquote t think [the DOJ] would block. We thought maybe the higher pri
ce would energize the \u8220\'3flet\rquote s get this deal done\u8221\'3f group
[at PeopleSoft]. And that was really a mistake because what we didn\rquote t kno
w was that PeopleSoft had basically put in their own unstoppable poison pill, wh
ich is to get the Justice Department involved. . . . The fact that they did that
and that it was really out of their hands - and then they hid behind the Justic
e Department when they rejected $26 ultimately.
}
{\i0 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb200
They hid behind what they had set in motion.
\par
}
}
}
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\*\bkmkstart co_g_ID0ETNBG_1}{\*\bkmkend co_g_ID0ETNBG_1}
{\i0 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb200
PeopleSoft cited regulatory concerns in dismissing Oracle\rquote s revised bid,
but its recommendation to shareholders focused on the inadequacy of the $26.00 p
er share offer. The first bullet read:
\par
}
}
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\i0 \fs20 \sa50 \ul0 \cf1 \strike0 \f2 \b0 \sb250
The revised offer price is inadequate and does not reflect PeopleSoft\rquote s r
eal value.
}
{\i0 \fs16 \cf1 \f2 \b0
{\*\bkmkstart co_footnoteReference_F39331276586_ID0EJO}{\*\bkmkend co_footnoteRe
ference_F39331276586_ID0EJO}
{\field {\*\fldinst HYPERLINK "#co_footnote_F39331276586_1" }{\fldrslt
{\i0 \fs16 \sa0 \ul0 \cf5 \strike0 \f2 \b0 \sb0
39
}}}
\par
}
}
}
}
}
}
he fact that we went ahead and decided that not only would we fight it, but we f
elt we had to fight it, was based on two things. First, we felt we would win. Se
cond, we felt we had to win because consolidation was very, very important to us
. Our business has zero marginal costs for a new license. There are very high fi
xed costs, very low marginal costs. As a result, scale matters. In a business wh
ere scale matters, you have to get scale. There are only two ways to do this: yo
u can sell a lot more somehow; or you can acquire something. And so we had to wi
n in order to defend this principle.
\par
}
}
}
}
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\*\bkmkstart co_g_ID0EHVBG_1}{\*\bkmkend co_g_ID0EHVBG_1}
{\i0 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb0
Oracle also took advantage of the lull to reevaluate its strategic posture. On M
ay 14, 2003, Oracle lowered its bid to $21.00 per share citing \u8220\'3fchanges
in market conditions and in PeopleSoft\rquote s market valuation.\u8221\'3f
}
{\i0 \fs16 \cf1 \f2 \b0
{\*\bkmkstart co_footnoteReference_F44331276586_ID0E2V}{\*\bkmkend co_footnoteRe
ference_F44331276586_ID0E2V}
{\field {\*\fldinst HYPERLINK "#co_footnote_F44331276586_1" }{\fldrslt
{\i0 \fs16 \sa0 \ul0 \cf5 \strike0 \f2 \b0 \sb0
44
}}}
}
{\i0 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb0
While reducing a bid was a highly unusual step in a takeover contest, PeopleSof
t\rquote s stock had been declining since the DOJ announcement in February.
}
{\i0 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb200
As Catz recalled:
\par
}
}
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\i0 \fs20 \ul0 \cf1 \strike0 \f2 \b0
}
{\i1 \fs20 \cf22 \f2 \b1
{\*\bkmkstart co_pp_sp_111958_22_1}{\*\bkmkend co_pp_sp_111958_22_1}
{\i1 \fs20 \sa0 \ul0 \cf22 \strike0 \f2 \b1 \sb0
*22
}
}
{\i0 \fs20 \sa50 \ul0 \cf1 \strike0 \f2 \b0 \sb50
By then, the market was really figuring that Oracle was never going to prevail
in their case with the government, so it should value PeopleSoft as a stand-alon
e company. People were starting to catch hold of the fact that two struggling co
mpanies together [PeopleSoft and JDEC] does not make a strong company. And so th
e stock price was starting to reflect the fact that this is really all it\rquote
s worth.
\par
}
}
}
}
}
}
}
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \qc \b1
{\*\bkmkstart co_g_ID0EAXBG_1}{\*\bkmkend co_g_ID0EAXBG_1}
{\i0 \fs20 \sa200 \ul0 \cf1 \strike0 \f2 \b1 \sb200
Conway Falls
\par
}
}
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\*\bkmkstart co_g_ID0EKXBG_1}{\*\bkmkend co_g_ID0EKXBG_1}
{\i0 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb0
On Sept. 9, 2004, one year and three months after Oracle\rquote s initial offer,
Judge Vaughn R. Walker of the United States District Court for the Northern Dis
trict of California handed the Department of Justice an embarrassing defeat. In
a strongly-worded 164-page opinion, Judge Walker held that the DOJ had failed to
prove that a merger between Oracle and PeopleSoft would be likely \u8220\'3fsub
stantially to lessen competition\u8221\'3f in the business applications software
market. Conway announced in an email to employees, \u8220\'3f[A]ntitrust concer
ns were never the centerpiece, only one of many issues.\u8221\'3f The court\rquo
te s ruling does not mean Oracle will acquire PeopleSoft.
}
{\i0 \fs16 \cf1 \f2 \b0
{\*\bkmkstart co_footnoteReference_F45331276586_ID0EEY}{\*\bkmkend co_footnoteRe
ference_F45331276586_ID0EEY}
{\field {\*\fldinst HYPERLINK "#co_footnote_F45331276586_1" }{\fldrslt
{\i0 \fs16 \sa0 \ul0 \cf5 \strike0 \f2 \b0 \sb0
45
}}}
}
{\i0 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb0
However, PeopleSoft\rquote s situation was growing desperate and Conway\rquote
s even more so.
\par
}
}
}
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\*\bkmkstart co_g_ID0ENYBG_1}{\*\bkmkend co_g_ID0ENYBG_1}
{\i0 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb0
Conway\rquote s take-no-prisoners style had been encouraging to customers, but i
t had also frayed his relationship with his board. Conway often acted without co
nsulting them and sought to control the flow of information. He had also bristle
d under Bogen\rquote s warnings about fiduciary duties, and eventually fired the
experienced Gibson Dunn attorney. He was especially incensed by Bogen\rquote s
decision to take concerns regarding the CAP directly to the board. In notes Conw
ay prepared about the \u8220\'3fsignificant degradation in the relationship\u822
1\'3f with Gibson Dunn, he cited \u8220\'3fNo escalation to CFO or CEO - straigh
t to BOD closed session.\u8221\'3f
}
{\i0 \fs16 \cf1 \f2 \b0
{\*\bkmkstart co_footnoteReference_F46331276586_ID0EKZ}{\*\bkmkend co_footnoteRe
ference_F46331276586_ID0EKZ}
{\field {\*\fldinst HYPERLINK "#co_footnote_F46331276586_1" }{\fldrslt
}
}
}
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\*\bkmkstart co_g_ID0E15BG_1}{\*\bkmkend co_g_ID0E15BG_1}
{\i0 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb200
\u8220\'3fThe statements were not true?\u8221\'3f
\par
}
}
}
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\*\bkmkstart co_g_ID0EG6BG_1}{\*\bkmkend co_g_ID0EG6BG_1}
{\i0 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb200
\u8220\'3fThe statements were promotional. I was selling.\u8221\'3f Conway said.
\par
}
}
}
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\*\bkmkstart co_g_ID0EBAAI_1}{\*\bkmkend co_g_ID0EBAAI_1}
{\i0 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb200
\u8220\'3fTrue? False?\u8221\'3f
\par
}
}
}
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\*\bkmkstart co_g_ID0ENAAI_1}{\*\bkmkend co_g_ID0ENAAI_1}
{\i0 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb200
\u8220\'3fAbsolutely not true.\u8221\'3f
}
{\i0 \fs16 \cf1 \f2 \b0
{\*\bkmkstart co_footnoteReference_F48331276586_ID0EUA}{\*\bkmkend co_footnoteRe
ference_F48331276586_ID0EUA}
{\field {\*\fldinst HYPERLINK "#co_footnote_F48331276586_1" }{\fldrslt
{\i0 \fs16 \sa0 \ul0 \cf5 \strike0 \f2 \b0 \sb0
48
}}}
\par
}
}
}
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\*\bkmkstart co_g_ID0E2AAI_1}{\*\bkmkend co_g_ID0E2AAI_1}
{\i0 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb200
While Max Gitter from Cleary Gottlieb represented PeopleSoft at the deposition,
Carroll intervened at this point to ask Conway whether he was represented indivi
dually as well. Conway said that he was not. Carroll then asked whether Conway h
ad thought about consulting with lawyers about the significance of a CEO making
false statements to the public markets. Conway said that he had not.
}
{\i0 \fs16 \cf1 \f2 \b0
{\*\bkmkstart co_footnoteReference_F49331276586_ID0ELB}{\*\bkmkend co_footnoteRe
ference_F49331276586_ID0ELB}
}
{\i1 \fs20 \cf22 \f2 \b1
{\*\bkmkstart co_pp_sp_111958_25_1}{\*\bkmkend co_pp_sp_111958_25_1}
{\i1 \fs20 \sa0 \ul0 \cf22 \strike0 \f2 \b1 \sb0
*25
}
}
{\i0 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb0
that Strine would be unlikely to invalidate the pill in view of the long line o
f Delaware cases finding pills to be \u8220\'3freasonable.\u8221\'3f But some fo
cused on Unocal\rquote s first prong - the \u8220\'3fthreat\u8221\'3f requiremen
t - and argued that the usual threats that the Delaware courts had endorsed, suc
h as \u8220\'3fstructural coercion\u8221\'3f of shareholders (through two-tier,
junk-bond-financed offers) or \u8220\'3fsubstantive coercion\u8221\'3f
}
{\i0 \fs16 \cf1 \f2 \b0
{\*\bkmkstart co_footnoteReference_F53331276586_ID0EFG}{\*\bkmkend co_footnoteRe
ference_F53331276586_ID0EFG}
{\field {\*\fldinst HYPERLINK "#co_footnote_F53331276586_1" }{\fldrslt
{\i0 \fs16 \sa0 \ul0 \cf5 \strike0 \f2 \b0 \sb0
53
}}}
}
{\i0 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb200
(that shareholders would tender out of ignorance), did not apply here: Oracle h
ad made a fully financed, all-cash offer for 100% of the shares to sophisticated
shareholders who had had 16 months to consider the offer. One legal advisor to
a major PeopleSoft shareholder estimated a 70% chance that Strine would force Pe
opleSoft to redeem its pill.
\par
}
}
}
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\*\bkmkstart co_g_ID0ERGAI_1}{\*\bkmkend co_g_ID0ERGAI_1}
{\i0 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb0
PeopleSoft\rquote s CAP presented even more interesting and novel questions of c
orporate law. The first question was whether the CAP represented a takeover defe
nse at all: Oracle argued that the CAP was intended to operate just like a poiso
n pill (and therefore was subject to Unocal analysis), while PeopleSoft argued t
hat the CAP was intended solely to assure customers and protect the business (an
d therefore was subject only to business judgment review). If the CAP was in fac
t a takeover defense, no one had previously used a threat to customers to satisf
y Unocal\rquote s first prong, though the language of Unocal indicated that such
a threat would be permissible. If the CAP survived the first prong of Unocal an
alysis, was a $2.0 billion potential liability \u8220\'3freasonable in relation
to the threat posed\u8221\'3f ? No one could predict with confidence how Strine
would answer these questions.
}
{\i0 \fs16 \cf1 \f2 \b0
{\*\bkmkstart co_footnoteReference_F54331276586_ID0EOH}{\*\bkmkend co_footnoteRe
ference_F54331276586_ID0EOH}
{\field {\*\fldinst HYPERLINK "#co_footnote_F54331276586_1" }{\fldrslt
{\i0 \fs16 \sa0 \ul0 \cf5 \strike0 \f2 \b0 \sb0
54
}}}
}
{\i0 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb0
Indeed, Strine himself did not seem to know: in a conference
}
{\i1 \fs20 \cf22 \f2 \b1
{\*\bkmkstart co_pp_sp_111958_26_1}{\*\bkmkend co_pp_sp_111958_26_1}
{\i1 \fs20 \sa0 \ul0 \cf22 \strike0 \f2 \b1 \sb0
*26
}
}
{\i0 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb0
with Allen Terrell of Richards, Layton & Finger and Don Wolfe of Potter, Anders
on & Corroon, lead Delaware counsel for Oracle and PeopleSoft respectively, Stri
ne admitted, \u8220\'3fThis is not an easy case.\u8221\'3f
}
{\i0 \fs16 \cf1 \f2 \b0
{\*\bkmkstart co_footnoteReference_F55331276586_ID0EAI}{\*\bkmkend co_footnoteRe
ference_F55331276586_ID0EAI}
{\field {\*\fldinst HYPERLINK "#co_footnote_F55331276586_1" }{\fldrslt
{\i0 \fs16 \sa0 \ul0 \cf5 \strike0 \f2 \b0 \sb0
55
}}}
\par
}
}
}
}
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \qc \b1
{\*\bkmkstart co_g_ID0EHIAI_1}{\*\bkmkend co_g_ID0EHIAI_1}
{\i0 \fs20 \sa200 \ul0 \cf1 \strike0 \f2 \b1 \sb200
California Looms
\par
}
}
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\*\bkmkstart co_g_ID0ERIAI_1}{\*\bkmkend co_g_ID0ERIAI_1}
{\i0 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb0
While the combatants faced off in Vice Chancellor Strine\rquote s courtroom in D
elaware, a parallel skirmish was gaining steam on the west coast. PeopleSoft\rqu
ote s California lawsuit, which had originally been dismissed by Oracle as a nui
sance at best, was slowly becoming a genuine threat. When it started in June 200
3, Oracle was sending two lawyers to court. By October 2004, Oracle was fielding
twelve. PeopleSoft was asking for compensatory damages of $1 billion and puniti
ve damages beyond that. Battle thought it was their best weapon:
\par
}
}
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\i0 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb200
It was very critical that this lawsuit was in Oakland, California. The Delaware
courts say \u8220\'3fWe don\rquote t care about 3,000 layoffs or 6,000 layoffs.
We\rquote re tired of this management entrenchment. You\rquote ve got to be deal
ing with the shareholders, and there\rquote s very little wiggle room you have i
n your loyalty to shareholder value.\u8221\'3f So what\rquote s going to happen
now is instead of a Delaware court with Judge Strine, Larry Ellison\rquote s goi
ng to be sitting in front of a jury in Oakland. And you know people who get on t
wo or three months of jury trial tend to be folks of very modest incomes. They a
re scared to death about 6,000 job losses in this area. And the fact that Larry
Ellison is one of the richest men in the world and acts flamboyantly puts him ri
ght in the crosshairs of why a lot of people think the capitalist system is bad.
\par
}
}
}
}
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\*\bkmkstart co_g_ID0EZKAI_1}{\*\bkmkend co_g_ID0EZKAI_1}
{\i0 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb200
So Ellison\rquote s not going to have Strine watching out for him. He\rquote s g
oing to have a bunch of people that think he\rquote s pond scum. And there\rquot
e s a possibility for a pretty big judgment. And everything is going our way.
\par
}
}
}
}
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \qc \b1
{\*\bkmkstart co_g_ID0EOLAI_1}{\*\bkmkend co_g_ID0EOLAI_1}
{\i0 \fs20 \sa200 \ul0 \cf1 \strike0 \f2 \b1 \sb200
The Delaware Trial
\par
}
}
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\*\bkmkstart co_g_ID0EYLAI_1}{\*\bkmkend co_g_ID0EYLAI_1}
{\i0 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb0
The Delaware trial began on October 4, 2004 in downtown Wilmington, Delaware. St
rine\rquote s courtroom overflowed with reporters, arbitrageurs, and lawyers. Th
e proceedings were simulcast into adjoining rooms so arbs could use their cell p
hones without disrupting the proceedings. When Ellison declared on the stand tha
t \u8220\'3fthere are
}
{\i1 \fs20 \cf22 \f2 \b1
{\*\bkmkstart co_pp_sp_111958_27_1}{\*\bkmkend co_pp_sp_111958_27_1}
{\i1 \fs20 \sa0 \ul0 \cf22 \strike0 \f2 \b1 \sb0
*27
}
}
{\i0 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb0
more discussions about lowering the [offer] price than raising the price,\u8221
\'3f
}
{\i0 \fs16 \cf1 \f2 \b0
{\*\bkmkstart co_footnoteReference_F56331276586_ID0EVM}{\*\bkmkend co_footnoteRe
ference_F56331276586_ID0EVM}
{\field {\*\fldinst HYPERLINK "#co_footnote_F56331276586_1" }{\fldrslt
{\i0 \fs16 \sa0 \ul0 \cf5 \strike0 \f2 \b0 \sb0
56
}}}
}
{\i0 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb0
and Catz similarly announced that Oracle might reduce its bid
}
{\i0 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb0
\u8220\'3fsomewhere between a third and a quarter,\u8221\'3f
}
{\i0 \fs16 \cf1 \f2 \b0
}
}
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\i0 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb200
The meetings were punishing. Battle remembers an especially bad day:
\par
}
}
}
}
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\*\bkmkstart co_g_ID0E2VAI_1}{\*\bkmkend co_g_ID0E2VAI_1}
{\i0 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb0
We met with three groups of arbs one morning, eight at a shot for an hour from 7
:00 to 8:00 to 9:00. That\rquote s like being raw meat in a lion\rquote s den. T
hose guys are intemperate and pretty obnoxious. And then at the end of the hour,
they\rquote d say, \u8220\'3fWell, thank
}
{\i1 \fs20 \cf22 \f2 \b1
{\*\bkmkstart co_pp_sp_111958_29_1}{\*\bkmkend co_pp_sp_111958_29_1}
{\i1 \fs20 \sa0 \ul0 \cf22 \strike0 \f2 \b1 \sb0
*29
}
}
{\i0 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb200
you very much, we appreciate everything you\rquote re trying to do for sharehol
der value,\u8221\'3f and walk out like we just had a nice cup of coffee together
.
\par
}
}
}
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\*\bkmkstart co_g_ID0E5WAI_1}{\*\bkmkend co_g_ID0E5WAI_1}
{\i0 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb200
Instead of providing a straightforward endorsement of the offer as Catz demanded
, the arbs were playing a more nuanced game in the days leading up to November 1
9. Federal securities rules prevented the PeopleSoft shareholders from talking d
irectly to each other, but investors coordinated their actions through back chan
nels such as PeopleSoft\rquote s proxy solicitors. Battle recalled:
\par
}
}
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\i0 \fs20 \sa50 \ul0 \cf1 \strike0 \f2 \b0 \sb250
One large investor pulled his shares back because we said we know this is going
to go above 50%. If it goes to 65%, 68%, 70%, Oracle has no motivation to raise
the price. It\rquote ll look completely dispositive. If it comes in at 55%, 58%,
60%, then Oracle can\rquote t walk away, because they\rquote ve said they\rquot
e d stay in the deal. There were two or three shareholders that actually voted s
ome yes and some no to get to a middle-ground result.
\par
}
}
}
}
}
}
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\*\bkmkstart co_g_ID0ELYAI_1}{\*\bkmkend co_g_ID0ELYAI_1}
{\i0 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb200
It\rquote s the only time I\rquote ve ever seen anybody trust in this process. S
ome guys trusted our proxy solicitor Alan Miller, that the count was high enough
so that they could pull some shares off the table to not make this look like su
ch a mandate. Without that trust there would have been no way of negotiating abo
ve $24.
\par
}
}
}
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\*\bkmkstart co_g_ID0E4YAI_1}{\*\bkmkend co_g_ID0E4YAI_1}
{\i0 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb200
While the vote got as high as 70% in the days leading up to November 19, the fin
al count was 61% of PeopleSoft\rquote s shares tendered after certain arbs pulle
d back shares at the last minute. Oracle achieved the majority that it had deman
ded in order to stay in the game.
\par
}
}
}
}
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \qc \b1
{\*\bkmkstart co_g_ID0EMZAI_1}{\*\bkmkend co_g_ID0EMZAI_1}
{\i0 \fs20 \sa200 \ul0 \cf1 \strike0 \f2 \b1 \sb200
The Deal
\par
}
}
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\*\bkmkstart co_g_ID0EWZAI_1}{\*\bkmkend co_g_ID0EWZAI_1}
{\i0 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb0
During the Delaware trial, a large PeopleSoft shareholder had approached Skip Ba
ttle with the strong sense that Oracle would be willing to offer $26.50 in cash,
or $27.00 with $24 in cash and $3 in Oracle stock. Battle was cautiously intrig
ued: \u8220\'3fWe were getting a lot of pressure from Judge Strine to do somethi
ng, but there was a lot of fear and suspicion, because if we got to the table an
d then it blew up, our salespeople said it was going to be really tough to make
the fourth quarter.\u8221\'3f Battle sent his shareholder back to Oracle to make
sure the deal was available. On November 29, the shareholder came back with his
report: no deal. As Battle described, \u8220\'3fApparently the [Oracle] executi
ves said, \u8216\'3fAre you kidding me? We just won the tender offer. No way.\u8
221\'3f\u8217\'3f
\par
}
}
}
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\*\bkmkstart co_g_ID0EO2AI_1}{\*\bkmkend co_g_ID0EO2AI_1}
}
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \qc \b1
{\*\bkmkstart co_g_ID0EIGBI_1}{\*\bkmkend co_g_ID0EIGBI_1}
{\i0 \fs20 \ul0 \cf1 \strike0 \f2 \b1
}
{\i1 \fs20 \cf22 \f2 \b1
{\*\bkmkstart co_pp_sp_111958_35_1}{\*\bkmkend co_pp_sp_111958_35_1}
{\i1 \fs20 \sa0 \ul0 \cf22 \strike0 \f2 \b1 \sb0
*35
}
}
{\i0 \fs20 \sa200 \ul0 \cf1 \strike0 \f2 \b1 \sb200
Exhibit 3 Accrued Liabilities Under PeopleSoft\rquote s Customer Assurance Prog
ram (as of Nov. 2004)
\par
}
}
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\*\bkmkstart co_anchor_tbl1_1}{\*\bkmkend co_anchor_tbl1_1}{
{\trowd \itap0 \trleft0
\clpadt20 \clpadft3 \clpadr20 \clpadfr3 \clbrdrt \clbrdrl \trql \clvertalt \cell
x1240
\clpadt20 \clpadft3 \clpadr20 \clpadfr3 \clbrdrt \trql \clvertalt \cellx3000
\clpadt20 \clpadft3 \clpadr20 \clpadfr3 \clbrdrt \trql \clvertalt \cellx4760
\clpadt20 \clpadft3 \clpadr20 \clpadfr3 \clbrdrt \trql \clvertalt \cellx6520
\clpadt20 \clpadft3 \clpadr20 \clpadfr3 \clbrdrt \trql \clvertalt \cellx8280
\clpadt20 \clpadft3 \clpadr20 \clpadfr3 \clbrdrt \clbrdrr \trql \clvertalt \cell
x10040
\intbl
{\ri50 \i0 \fs20 \cf1 \f2 \li50 \qc \b0
{\i0 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb0
CAP Version #
}
}\i0 \ri50 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \li50 \qc \b0 \sb0 \intbl \cell \in
tbl
{\ri50 \i0 \fs20 \cf1 \f2 \li50 \qc \b0
{\i0 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb0
Approximate Dates
}
}\i0 \ri50 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \li50 \qc \b0 \sb0 \intbl \cell \in
tbl
{\ri50 \i0 \fs20 \cf1 \f2 \li50 \qc \b0
{\i0 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb0
Acquisition trigger
}
}\i0 \ri50 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \li50 \qc \b0 \sb0 \intbl \cell \in
tbl
{\ri50 \i0 \fs20 \cf1 \f2 \li50 \qc \b0
{\i0 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb0
Product support trigger
}
}\i0 \ri50 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \li50 \qc \b0 \sb0 \intbl \cell \in
tbl
{\ri50 \i0 \fs20 \cf1 \f2 \li50 \qc \b0
{\i0 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb0
Payment to customers
}
}\i0 \ri50 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \li50 \qc \b0 \sb0 \intbl \cell \in
tbl
2
}
}\i0 \ri50 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \li50 \qc \b0 \sb0 \intbl \cell \in
tbl
{\ri50 \i0 \fs20 \cf1 \f2 \li50 \qc \b0
{\i0 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb0
September 2003
}
}\i0 \ri50 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \li50 \qc \b0 \sb0 \intbl \cell \in
tbl
{\ri50 \i0 \fs20 \cf1 \f2 \li50 \qc \b0
{\i0 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb0
Election of a majority of new directors not approved by incumbent board or acqui
sition within two years of customer contract date
}
}\i0 \ri50 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \li50 \qc \b0 \sb0 \intbl \cell \in
tbl
{\ri50 \i0 \fs20 \cf1 \f2 \li50 \qc \b0
{\i0 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb0
Reduction in support within four years of customer contract date
}
}\i0 \ri50 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \li50 \qc \b0 \sb0 \intbl \cell \in
tbl
{\ri50 \i0 \fs20 \cf1 \f2 \li50 \qc \b0
{\i0 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb0
Between two and five times purchase price, with the multiple increasing as the s
ize of the contract increased
}
}\i0 \ri50 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \li50 \qc \b0 \sb0 \intbl \cell \in
tbl
{\ri50 \i0 \fs20 \cf1 \f2 \li50 \qc \b0
{\i0 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb0
$170
}
}\i0 \ri50 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \li50 \qc \b0 \sb0 \intbl \cell \ro
w }
{\trowd \itap0 \trleft0
\clpadt20 \clpadft3 \clpadr20 \clpadfr3 \clbrdrl \trql \clvertalt \cellx1240
\clpadt20 \clpadft3 \clpadr20 \clpadfr3 \trql \clvertalt \cellx3000
\clpadt20 \clpadft3 \clpadr20 \clpadfr3 \trql \clvertalt \cellx4760
\clpadt20 \clpadft3 \clpadr20 \clpadfr3 \trql \clvertalt \cellx6520
\clpadt20 \clpadft3 \clpadr20 \clpadfr3 \trql \clvertalt \cellx8280
\clpadt20 \clpadft3 \clpadr20 \clpadfr3 \clbrdrr \trql \clvertalt \cellx10040
\intbl
{\ri50 \i0 \fs20 \cf1 \f2 \li50 \qc \b0
{\i0 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb0
3
}
}\i0 \ri50 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \li50 \qc \b0 \sb0 \intbl \cell \in
tbl
{\ri50 \i0 \fs20 \cf1 \f2 \li50 \qc \b0
{\i0 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb0
September - November 2003
}
}\i0 \ri50 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \li50 \qc \b0 \sb0 \intbl \cell \in
tbl
{\ri50 \i0 \fs20 \cf1 \f2 \li50 \qc \b0
{\i0 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb0
Election of a majority of new directors not approved by incumbent board and acqu
isition within two years of customer contract date
}
}\i0 \ri50 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \li50 \qc \b0 \sb0 \intbl \cell \in
tbl
{\ri50 \i0 \fs20 \cf1 \f2 \li50 \qc \b0
{\i0 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb0
Same as above
}
}\i0 \ri50 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \li50 \qc \b0 \sb0 \intbl \cell \in
tbl
{\ri50 \i0 \fs20 \cf1 \f2 \li50 \qc \b0
{\i0 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb0
Same as above
}
}\i0 \ri50 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \li50 \qc \b0 \sb0 \intbl \cell \in
tbl
{\ri50 \i0 \fs20 \cf1 \f2 \li50 \qc \b0
{\i0 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb0
$40
}
}\i0 \ri50 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \li50 \qc \b0 \sb0 \intbl \cell \ro
w }
{\trowd \itap0 \trleft0
\clpadt20 \clpadft3 \clpadr20 \clpadfr3 \clbrdrl \trql \clvertalt \cellx1240
\clpadt20 \clpadft3 \clpadr20 \clpadfr3 \trql \clvertalt \cellx3000
\clpadt20 \clpadft3 \clpadr20 \clpadfr3 \trql \clvertalt \cellx4760
\clpadt20 \clpadft3 \clpadr20 \clpadfr3 \trql \clvertalt \cellx6520
\clpadt20 \clpadft3 \clpadr20 \clpadfr3 \trql \clvertalt \cellx8280
\clpadt20 \clpadft3 \clpadr20 \clpadfr3 \clbrdrr \trql \clvertalt \cellx10040
\intbl
{\ri50 \i0 \fs20 \cf1 \f2 \li50 \qc \b0
{\i0 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb0
4
}
}\i0 \ri50 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \li50 \qc \b0 \sb0 \intbl \cell \in
tbl
{\ri50 \i0 \fs20 \cf1 \f2 \li50 \qc \b0
{\i0 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb0
November 2003- June 2004
}
}\i0 \ri50 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \li50 \qc \b0 \sb0 \intbl \cell \in
tbl
{\ri50 \i0 \fs20 \cf1 \f2 \li50 \qc \b0
{\i0 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb0
Acquisition within two years of customer contract date
}
}\i0 \ri50 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \li50 \qc \b0 \sb0 \intbl \cell \in
tbl
{\ri50 \i0 \fs20 \cf1 \f2 \li50 \qc \b0
{\i0 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb0
Same as above
}
}\i0 \ri50 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \li50 \qc \b0 \sb0 \intbl \cell \in
tbl
{\ri50 \i0 \fs20 \cf1 \f2 \li50 \qc \b0
{\i0 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb0
Same as above
}
}\i0 \ri50 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \li50 \qc \b0 \sb0 \intbl \cell \in
tbl
{\ri50 \i0 \fs20 \cf1 \f2 \li50 \qc \b0
}
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\*\bkmkstart co_g_ID0ENPBI_1}{\*\bkmkend co_g_ID0ENPBI_1}
{\i0 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb0
THE COURT: I want to put this under seal, too, from the get-go. Do I just have M
r. Wolfe and Mr. Terrell?
\par
}
}
}
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\*\bkmkstart co_g_ID0E3PBI_1}{\*\bkmkend co_g_ID0E3PBI_1}
{\i0 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb200
MR. TERRELL: Yes, Your Honor.
\par
}
}
}
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\*\bkmkstart co_g_ID0EIQBI_1}{\*\bkmkend co_g_ID0EIQBI_1}
{\i0 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb200
MR. WOLFE: Yes, Your Honor.
\par
}
}
}
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\*\bkmkstart co_g_ID0EUQBI_1}{\*\bkmkend co_g_ID0EUQBI_1}
{\i0 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb200
THE COURT: . . . I\rquote m going to cut to the chase. I read Mr. Battle to be t
estifying under oath that if Oracle put on the table $26.50, he would recommend
that to the transaction committee and to his board.
\par
}
}
}
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\*\bkmkstart co_g_ID0EDRBI_1}{\*\bkmkend co_g_ID0EDRBI_1}
{\i0 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb200
MR. WOLFE: I believe he said that quite explicitly.
\par
}
}
}
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\*\bkmkstart co_g_ID0EPRBI_1}{\*\bkmkend co_g_ID0EPRBI_1}
{\i0 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb200
THE COURT: But he never said it to Joe Grundfest.
\par
}
}
}
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
\par
}
}
}
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\*\bkmkstart co_g_ID0EZXBI_1}{\*\bkmkend co_g_ID0EZXBI_1}
{\i0 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb200
MR. WOLFE: Yes, Your Honor.
\par
}
}
}
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\*\bkmkstart co_g_ID0EFYBI_1}{\*\bkmkend co_g_ID0EFYBI_1}
{\i0 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb200
THE COURT: Might I suggest that you guys figure out how you get them together wh
ile you are here?
\par
}
}
}
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\*\bkmkstart co_g_ID0ERYBI_1}{\*\bkmkend co_g_ID0ERYBI_1}
{\i0 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb200
MR. WOLFE: Yes.
\par
}
}
}
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\*\bkmkstart co_g_ID0E4YBI_1}{\*\bkmkend co_g_ID0E4YBI_1}
{\i0 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb200
THE COURT: And I\rquote m saying this in good faith to both parties. There is a
real value to Oracle of deal certainty at this point. And there is a real value
to PeopleSoft of deal certainty, too. And so, you know, I don\rquote t know what
to make of it. And I don\rquote t know exactly whether to seal or not seal, bec
ause you are going to have to figure out a way for Oracle to be able to respond
to this testimony.
\par
}
}
}
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\*\bkmkstart co_g_ID0EVZBI_1}{\*\bkmkend co_g_ID0EVZBI_1}
{\i0 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb200
MR. WOLFE: Certainly. We are not sealing it from Oracle\rquote s lawyers, certai
nly.
\par
}
}
}
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\*\bkmkstart co_g_ID0EE1BI_1}{\*\bkmkend co_g_ID0EE1BI_1}
{\i0 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb200
THE COURT: No. I know. Factual assertion, remember: there is some unidentified p
erson at Oracle who supposedly turned down the opportunity to seize upon this ba
ck channel. Right?
\par
}
}
}
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\*\bkmkstart co_g_ID0EX1BI_1}{\*\bkmkend co_g_ID0EX1BI_1}
{\i0 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb200
MR. WOLFE: How can they find that person?
\par
}
}
}
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\*\bkmkstart co_g_ID0ED2BI_1}{\*\bkmkend co_g_ID0ED2BI_1}
{\i0 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb200
THE COURT: Right.
\par
}
}
}
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\*\bkmkstart co_g_ID0EP2BI_1}{\*\bkmkend co_g_ID0EP2BI_1}
{\i0 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb200
MR. WOLFE: Well, we are not trying to prove that Oracle would pay through this p
articular line of evidence. We are not trying to prove that Oracle would pay mor
e than $24 despite the testimony we got the other day from their CFO that they w
ill not negotiate. What we\rquote re trying to prove is that Mr. Battle is not i
ntransient and entrenched.
\par
}
}
}
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\*\bkmkstart co_g_ID0EB3BI_1}{\*\bkmkend co_g_ID0EB3BI_1}
{\i0 \fs20 \ul0 \cf1 \strike0 \f2 \b0
}
{\i1 \fs20 \cf22 \f2 \b1
{\*\bkmkstart co_pp_sp_111958_38_1}{\*\bkmkend co_pp_sp_111958_38_1}
{\i1 \fs20 \sa0 \ul0 \cf22 \strike0 \f2 \b1 \sb0
*38
}
}
{\i0 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb200
THE COURT: Right. But my initial reaction is that is not a mature way to procee
d. Think of it as a preview of question that you will get at oral argument from
a judge: Isn\rquote t this precisely why we have independent directors like Mr.
Battle and Mr. Grundfest, because of the kind of jejune, playground, adolescent,
macho - it\rquote s not just macho nonsense in this case, because there are wom
en involved in it, too - that goes between managers of companies, and their kind
of little feisty stuff? That is why we have independent directors, actually. Th
e way I can find out whether they are serious is to go to my fellow mature indep
endent director who is not involved in this and say, \u8220\'3fThis is what I ha
ve heard through this third party. Is there plausibility to this? Because, if yo
u are really in good faith willing to sit down and talk to us about our real val
ue, above your current offer, you know, then I want to explore that.\u8221\'3f T
hat is why we have independent directors.
\par
}
}
}
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\*\bkmkstart co_g_ID0EP4BI_1}{\*\bkmkend co_g_ID0EP4BI_1}
{\i0 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb200
MR. WOLFE: I understand Your Honor\rquote s point. Oracle, or someone presumably
at Oracle, suggesting a higher price is available. We have someone at PeopleSof
t saying, \u8220\'3fGee, if that\rquote s the case, maybe we would be interested
in resolving this thing in a mature way.\u8221\'3f I don\rquote t want to leave
the record in a state where it suggests that Mr. Battle is acting like a teenag
er at the junior prom waiting to get asked to dance.
\par
}
}
}
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\*\bkmkstart co_g_ID0EN5BI_1}{\*\bkmkend co_g_ID0EN5BI_1}
{\i0 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb200
THE COURT: What I mean is I\rquote m not going to give credence to something, Mr
. Wolfe, that I can\rquote t have tested adversarially.
\par
}
}
}
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\*\bkmkstart co_g_ID0EZ5BI_1}{\*\bkmkend co_g_ID0EZ5BI_1}
{\i0 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb200
MR. TERRELL: Your Honor, you have put your finger on our real concern with Don\r
quote s letter and the request to seal the Court. The real concern is that to da
te we have been unable to tell our client about that testimony, so we feel restr
icted in our ability to deal with it at trial. That\rquote s a greater concern t
o us than, frankly, the sealing or not, though there are complications that go,
as Your Honor is more aware than I, with sealing the court in a public trial, an
d what implications might be drawn, etc. And what I propose to do, and I explain
ed to my client, is we do want the attorney-eyes-only lifted, so that we can dis
cuss his testimony with our client, and then productively be able to deal with i
t, and hopefully productively be able to deal with it on a deal concept. In othe
r words, hopefully, it might lead to some resolution.
\par
}
}
}
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\ri0 \i0 \fs20 \cf1 \f2 \li0 \b0 \qj
{\*\bkmkstart co_g_ID0ER6BI_1}{\*\bkmkend co_g_ID0ER6BI_1}
{\i0 \fs20 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb0
THE COURT: I think that is a good idea. I think the attorneys-eyes-only justific
ation for it is not founded. . . . If you get this transcript, you know, Battle
and Grundfest can read it, and they can hear our discussion, and maybe it will j
ust occur to somebody that they ought
}
{\i1 \fs20 \cf22 \f2 \b1
rslt
{\i0 \fs20 \sa0 \ul0 \cf5 \strike0 \f2 \b0 \sb0
5
}\i0 \fs20 \sa0 \cf5 \ul0 \f2 \strike0 \b0 \sb0 }}
}
}\i0 \ri120 \fs20 \ql \cf1 \f2 \li120 \b0 \intbl \cell \intbl
{\ri20 \i0 \fs18 \cf1 \f2 \li20 \b0 \qj
{\ri20 \i0 \fs18 \cf1 \f2 \li20 \b0 \qj
{\ri20 \i0 \fs18 \cf1 \f2 \li20 \b0 \qj
{\i0 \fs18 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb0
Transcript of Testimony of Larry Ellison at 1141, Oracle v. PeopleSoft, No. 2037
7 (Del. Ch. Oct. 8, 2004).
\par
}
}
}
}\i0 \ri20 \fs18 \sa0 \ul0 \cf1 \strike0 \f2 \li20 \b0 \sb0 \qj \intbl \cell \ro
w }
{\trowd \itap0 \trleft0
\clpadt20 \clpadft3 \clpadb100 \clpadfb3 \clpadl100 \clpadfl3 \clpadr20 \clpadfr
3 \clbrdrl \trql \clvertalt \cellx600
\clpadt20 \clpadft3 \clpadb90 \clpadfb3 \clpadl90 \clpadfl3 \clpadr20 \clpadfr3
\clbrdrr \trql \cellx10080
\intbl
{\ri120 \i0 \ql \fs20 \cf1 \f2 \li120 \b0
{\i0 \fs20 \cf1 \f2 \b0
{\*\bkmkstart co_footnote_F6331276586_1}{\*\bkmkend co_footnote_F6331276586_1}
{\field {\*\fldinst HYPERLINK "#co_footnoteReference_F6331276586_ID0EHNA" }{\fld
rslt
{\i0 \fs20 \sa0 \ul0 \cf5 \strike0 \f2 \b0 \sb0
6
}\i0 \fs20 \sa0 \cf5 \ul0 \f2 \strike0 \b0 \sb0 }}
}
}\i0 \ri120 \fs20 \ql \cf1 \f2 \li120 \b0 \intbl \cell \intbl
{\ri20 \i0 \fs18 \cf1 \f2 \li20 \b0 \qj
{\ri20 \i0 \fs18 \cf1 \f2 \li20 \b0 \qj
{\ri20 \i0 \fs18 \cf1 \f2 \li20 \b0 \qj
{\i0 \fs18 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb0
Computerworld Honors Program International Archives, Transcript of a Video Histo
ry Interview with Craig Conway at 12 (Apr. 16, 2002), http:// www.cwhonors.org/a
rchives/histories/Conway%20final.pdf.
\par
}
}
}
}\i0 \ri20 \fs18 \sa0 \ul0 \cf1 \strike0 \f2 \li20 \b0 \sb0 \qj \intbl \cell \ro
w }
{\trowd \itap0 \trleft0
\clpadt20 \clpadft3 \clpadb100 \clpadfb3 \clpadl100 \clpadfl3 \clpadr20 \clpadfr
3 \clbrdrl \trql \clvertalt \cellx600
\clpadt20 \clpadft3 \clpadb90 \clpadfb3 \clpadl90 \clpadfl3 \clpadr20 \clpadfr3
\clbrdrr \trql \cellx10080
\intbl
{\ri120 \i0 \ql \fs20 \cf1 \f2 \li120 \b0
{\i0 \fs20 \cf1 \f2 \b0
{\*\bkmkstart co_footnote_F7331276586_1}{\*\bkmkend co_footnote_F7331276586_1}
{\field {\*\fldinst HYPERLINK "#co_footnoteReference_F7331276586_ID0EVPA" }{\fld
rslt
{\i0 \fs20 \sa0 \ul0 \cf5 \strike0 \f2 \b0 \sb0
7
}\i0 \ri120 \fs20 \ql \cf1 \f2 \li120 \b0 \intbl \cell \intbl
{\ri20 \i0 \fs18 \cf1 \f2 \li20 \b0 \qj
{\ri20 \i0 \fs18 \cf1 \f2 \li20 \b0 \qj
{\ri20 \i0 \fs18 \cf1 \f2 \li20 \b0 \qj
{\i0 \fs18 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb0
Catz took issue with this characterization, suggesting it may have been the prod
uct of some errant language. \u8220\'3fThe concept of going hostile on PeopleSof
t was not part of a \u8216\'3fwar game in a box.\u8217\'3f There was no war game
in a box. There was no box. The Department of Justice subpoenaed \u8216\'3fthe
box\u8217\'3f and subpoenaed the documents, none of which exist. It was just in
our own hypotheticals: \u8216\'3fGee, if this happens, we should do this. If Peo
pleSoft turns this deal, the JDEC deal, into a cash deal, we should bid for JDEC
.\u8217\'3f It was that kind of a discussion.\u8221\'3f
\par
}
}
}
}\i0 \ri20 \fs18 \sa0 \ul0 \cf1 \strike0 \f2 \li20 \b0 \sb0 \qj \intbl \cell \ro
w }
{\trowd \itap0 \trleft0
\clpadt20 \clpadft3 \clpadb100 \clpadfb3 \clpadl100 \clpadfl3 \clpadr20 \clpadfr
3 \clbrdrl \trql \clvertalt \cellx600
\clpadt20 \clpadft3 \clpadb90 \clpadfb3 \clpadl90 \clpadfl3 \clpadr20 \clpadfr3
\clbrdrr \trql \cellx10080
\intbl
{\ri120 \i0 \ql \fs20 \cf1 \f2 \li120 \b0
{\i0 \fs20 \cf1 \f2 \b0
{\*\bkmkstart co_footnote_F10331276586_1}{\*\bkmkend co_footnote_F10331276586_1}
{\field {\*\fldinst HYPERLINK "#co_footnoteReference_F10331276586_ID0ECX" }{\fld
rslt
{\i0 \fs20 \sa0 \ul0 \cf5 \strike0 \f2 \b0 \sb0
10
}\i0 \fs20 \sa0 \cf5 \ul0 \f2 \strike0 \b0 \sb0 }}
}
}\i0 \ri120 \fs20 \ql \cf1 \f2 \li120 \b0 \intbl \cell \intbl
{\ri20 \i0 \fs18 \cf1 \f2 \li20 \b0 \qj
{\ri20 \i0 \fs18 \cf1 \f2 \li20 \b0 \qj
{\ri20 \i0 \fs18 \cf1 \f2 \li20 \b0 \qj
{\i0 \fs18 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb0
As Catz candidly related, \u8220\'3fThe truth is that we\rquote re not very good
advice takers at Oracle.\u8221\'3f
\par
}
}
}
}\i0 \ri20 \fs18 \sa0 \ul0 \cf1 \strike0 \f2 \li20 \b0 \sb0 \qj \intbl \cell \ro
w }
{\trowd \itap0 \trleft0
\clpadt20 \clpadft3 \clpadb100 \clpadfb3 \clpadl100 \clpadfl3 \clpadr20 \clpadfr
3 \clbrdrl \trql \clvertalt \cellx600
\clpadt20 \clpadft3 \clpadb90 \clpadfb3 \clpadl90 \clpadfl3 \clpadr20 \clpadfr3
\clbrdrr \trql \cellx10080
\intbl
{\ri120 \i0 \ql \fs20 \cf1 \f2 \li120 \b0
{\i0 \fs20 \cf1 \f2 \b0
{\*\bkmkstart co_footnote_F11331276586_1}{\*\bkmkend co_footnote_F11331276586_1}
{\field {\*\fldinst HYPERLINK "#co_footnoteReference_F11331276586_ID0EM1" }{\fld
rslt
{\i0 \fs20 \sa0 \ul0 \cf5 \strike0 \f2 \b0 \sb0
11
\par
}
}
}
}\i0 \ri20 \fs18 \sa0 \ul0 \cf1 \strike0 \f2 \li20 \b0 \sb0 \qj \intbl \cell \ro
w }
{\trowd \itap0 \trleft0
\clpadt20 \clpadft3 \clpadb100 \clpadfb3 \clpadl100 \clpadfl3 \clpadr20 \clpadfr
3 \clbrdrl \trql \clvertalt \cellx600
\clpadt20 \clpadft3 \clpadb90 \clpadfb3 \clpadl90 \clpadfl3 \clpadr20 \clpadfr3
\clbrdrr \trql \cellx10080
\intbl
{\ri120 \i0 \ql \fs20 \cf1 \f2 \li120 \b0
{\i0 \fs20 \cf1 \f2 \b0
{\*\bkmkstart co_footnote_F16331276586_1}{\*\bkmkend co_footnote_F16331276586_1}
{\field {\*\fldinst HYPERLINK "#co_footnoteReference_F16331276586_ID0ETF" }{\fld
rslt
{\i0 \fs20 \sa0 \ul0 \cf5 \strike0 \f2 \b0 \sb0
16
}\i0 \fs20 \sa0 \cf5 \ul0 \f2 \strike0 \b0 \sb0 }}
}
}\i0 \ri120 \fs20 \ql \cf1 \f2 \li120 \b0 \intbl \cell \intbl
{\ri20 \i0 \fs18 \cf1 \f2 \li20 \b0 \qj
{\ri20 \i0 \fs18 \cf1 \f2 \li20 \b0 \qj
{\ri20 \i0 \fs18 \cf1 \f2 \li20 \b0 \qj
{\i0 \fs18 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb0
Plaintiffs\rquote Pre-Trial Brief, supra note 1.
\par
}
}
}
}\i0 \ri20 \fs18 \sa0 \ul0 \cf1 \strike0 \f2 \li20 \b0 \sb0 \qj \intbl \cell \ro
w }
{\trowd \itap0 \trleft0
\clpadt20 \clpadft3 \clpadb100 \clpadfb3 \clpadl100 \clpadfl3 \clpadr20 \clpadfr
3 \clbrdrl \trql \clvertalt \cellx600
\clpadt20 \clpadft3 \clpadb90 \clpadfb3 \clpadl90 \clpadfl3 \clpadr20 \clpadfr3
\clbrdrr \trql \cellx10080
\intbl
{\ri120 \i0 \ql \fs20 \cf1 \f2 \li120 \b0
{\i0 \fs20 \cf1 \f2 \b0
{\*\bkmkstart co_footnote_F17331276586_1}{\*\bkmkend co_footnote_F17331276586_1}
{\field {\*\fldinst HYPERLINK "#co_footnoteReference_F17331276586_ID0EUG" }{\fld
rslt
{\i0 \fs20 \sa0 \ul0 \cf5 \strike0 \f2 \b0 \sb0
17
}\i0 \fs20 \sa0 \cf5 \ul0 \f2 \strike0 \b0 \sb0 }}
}
}\i0 \ri120 \fs20 \ql \cf1 \f2 \li120 \b0 \intbl \cell \intbl
{\ri20 \i0 \fs18 \cf1 \f2 \li20 \b0 \qj
{\ri20 \i0 \fs18 \cf1 \f2 \li20 \b0 \qj
{\ri20 \i0 \fs18 \cf1 \f2 \li20 \b0 \qj
{\i0 \fs18 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb0
Complaint at 2, PeopleSoft Inc. v. Oracle Corp., No. RG0310 1434 (Cal. Super. Ct
. June 13, 2003).
\par
}
}
}
}\i0 \ri20 \fs18 \sa0 \ul0 \cf1 \strike0 \f2 \li20 \b0 \sb0 \qj \intbl \cell \ro
w }
{\trowd \itap0 \trleft0
\clpadt20 \clpadft3 \clpadb100 \clpadfb3 \clpadl100 \clpadfl3 \clpadr20 \clpadfr
3 \clbrdrl \trql \clvertalt \cellx600
\clpadt20 \clpadft3 \clpadb90 \clpadfb3 \clpadl90 \clpadfl3 \clpadr20 \clpadfr3
\clbrdrr \trql \cellx10080
\intbl
{\ri120 \i0 \ql \fs20 \cf1 \f2 \li120 \b0
{\i0 \fs20 \cf1 \f2 \b0
{\*\bkmkstart co_footnote_F18331276586_1}{\*\bkmkend co_footnote_F18331276586_1}
{\field {\*\fldinst HYPERLINK "#co_footnoteReference_F18331276586_ID0E2H" }{\fld
rslt
{\i0 \fs20 \sa0 \ul0 \cf5 \strike0 \f2 \b0 \sb0
18
}\i0 \fs20 \sa0 \cf5 \ul0 \f2 \strike0 \b0 \sb0 }}
}
}\i0 \ri120 \fs20 \ql \cf1 \f2 \li120 \b0 \intbl \cell \intbl
{\ri20 \i0 \fs18 \cf1 \f2 \li20 \b0 \qj
{\ri20 \i0 \fs18 \cf1 \f2 \li20 \b0 \qj
{\ri20 \i0 \fs18 \cf1 \f2 \li20 \b0 \qj
{\i0 \fs18 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb0
Mark Veverka, Plugged In: Oracle Rattles Industry with Bid for PeopleSoft, Barro
n\rquote s, June 9, 2003, at T3.
\par
}
}
}
}\i0 \ri20 \fs18 \sa0 \ul0 \cf1 \strike0 \f2 \li20 \b0 \sb0 \qj \intbl \cell \ro
w }
{\trowd \itap0 \trleft0
\clpadt20 \clpadft3 \clpadb100 \clpadfb3 \clpadl100 \clpadfl3 \clpadr20 \clpadfr
3 \clbrdrl \trql \clvertalt \cellx600
\clpadt20 \clpadft3 \clpadb90 \clpadfb3 \clpadl90 \clpadfl3 \clpadr20 \clpadfr3
\clbrdrr \trql \cellx10080
\intbl
{\ri120 \i0 \ql \fs20 \cf1 \f2 \li120 \b0
{\i0 \fs20 \cf1 \f2 \b0
{\*\bkmkstart co_footnote_F19331276586_1}{\*\bkmkend co_footnote_F19331276586_1}
{\field {\*\fldinst HYPERLINK "#co_footnoteReference_F19331276586_ID0EII" }{\fld
rslt
{\i0 \fs20 \sa0 \ul0 \cf5 \strike0 \f2 \b0 \sb0
19
}\i0 \fs20 \sa0 \cf5 \ul0 \f2 \strike0 \b0 \sb0 }}
}
}\i0 \ri120 \fs20 \ql \cf1 \f2 \li120 \b0 \intbl \cell \intbl
{\ri20 \i0 \fs18 \cf1 \f2 \li20 \b0 \qj
{\ri20 \i0 \fs18 \cf1 \f2 \li20 \b0 \qj
{\ri20 \i0 \fs18 \cf1 \f2 \li20 \b0 \qj
{\i0 \fs18 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb0
Target: PeopleSoft, Computer Reseller News, June 9, 2003, at 18.
\par
}
}
}
}\i0 \ri20 \fs18 \sa0 \ul0 \cf1 \strike0 \f2 \li20 \b0 \sb0 \qj \intbl \cell \ro
w }
{\trowd \itap0 \trleft0
\clpadt20 \clpadft3 \clpadb100 \clpadfb3 \clpadl100 \clpadfl3 \clpadr20 \clpadfr
3 \clbrdrl \trql \clvertalt \cellx600
\clpadt20 \clpadft3 \clpadb90 \clpadfb3 \clpadl90 \clpadfl3 \clpadr20 \clpadfr3
\par
}
}
}
}\i0 \ri20 \fs18 \sa0 \ul0 \cf1 \strike0 \f2 \li20 \b0 \sb0 \qj \intbl \cell \ro
w }
{\trowd \itap0 \trleft0
\clpadt20 \clpadft3 \clpadb100 \clpadfb3 \clpadl100 \clpadfl3 \clpadr20 \clpadfr
3 \clbrdrl \trql \clvertalt \cellx600
\clpadt20 \clpadft3 \clpadb90 \clpadfb3 \clpadl90 \clpadfl3 \clpadr20 \clpadfr3
\clbrdrr \trql \cellx10080
\intbl
{\ri120 \i0 \ql \fs20 \cf1 \f2 \li120 \b0
{\i0 \fs20 \cf1 \f2 \b0
{\*\bkmkstart co_footnote_F41331276586_1}{\*\bkmkend co_footnote_F41331276586_1}
{\field {\*\fldinst HYPERLINK "#co_footnoteReference_F41331276586_ID0ELP" }{\fld
rslt
{\i0 \fs20 \sa0 \ul0 \cf5 \strike0 \f2 \b0 \sb0
41
}\i0 \fs20 \sa0 \cf5 \ul0 \f2 \strike0 \b0 \sb0 }}
}
}\i0 \ri120 \fs20 \ql \cf1 \f2 \li120 \b0 \intbl \cell \intbl
{\ri20 \i0 \fs18 \cf1 \f2 \li20 \b0 \qj
{\ri20 \i0 \fs18 \cf1 \f2 \li20 \b0 \qj
{\ri20 \i0 \fs18 \cf1 \f2 \li20 \b0 \qj
{\i0 \fs18 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb0
Michael Bazeley, PeopleSoft Board Rejects New Oracle Offer, San Jose Mercury New
s, Feb. 10, 2004, at 1A.
\par
}
}
}
}\i0 \ri20 \fs18 \sa0 \ul0 \cf1 \strike0 \f2 \li20 \b0 \sb0 \qj \intbl \cell \ro
w }
{\trowd \itap0 \trleft0
\clpadt20 \clpadft3 \clpadb100 \clpadfb3 \clpadl100 \clpadfl3 \clpadr20 \clpadfr
3 \clbrdrl \trql \clvertalt \cellx600
\clpadt20 \clpadft3 \clpadb90 \clpadfb3 \clpadl90 \clpadfl3 \clpadr20 \clpadfr3
\clbrdrr \trql \cellx10080
\intbl
{\ri120 \i0 \ql \fs20 \cf1 \f2 \li120 \b0
{\i0 \fs20 \cf1 \f2 \b0
{\*\bkmkstart co_footnote_F42331276586_1}{\*\bkmkend co_footnote_F42331276586_1}
{\field {\*\fldinst HYPERLINK "#co_footnoteReference_F42331276586_ID0EPQ" }{\fld
rslt
{\i0 \fs20 \sa0 \ul0 \cf5 \strike0 \f2 \b0 \sb0
42
}\i0 \fs20 \sa0 \cf5 \ul0 \f2 \strike0 \b0 \sb0 }}
}
}\i0 \ri120 \fs20 \ql \cf1 \f2 \li120 \b0 \intbl \cell \intbl
{\ri20 \i0 \fs18 \cf1 \f2 \li20 \b0 \qj
{\ri20 \i0 \fs18 \cf1 \f2 \li20 \b0 \qj
{\ri20 \i0 \fs18 \cf1 \f2 \li20 \b0 \qj
{\i0 \fs18 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb0
Trial Transcript, Vol. I at 104, Oracle v. PeopleSoft, No. 20377 (Del. Ch. Oct.
4, 2004).
\par
}
}
}
}\i0 \ri20 \fs18 \sa0 \ul0 \cf1 \strike0 \f2 \li20 \b0 \sb0 \qj \intbl \cell \ro
w }
{\trowd \itap0 \trleft0
\clpadt20 \clpadft3 \clpadb100 \clpadfb3 \clpadl100 \clpadfl3 \clpadr20 \clpadfr
3 \clbrdrl \trql \clvertalt \cellx600
\clpadt20 \clpadft3 \clpadb90 \clpadfb3 \clpadl90 \clpadfl3 \clpadr20 \clpadfr3
\clbrdrr \trql \cellx10080
\intbl
{\ri120 \i0 \ql \fs20 \cf1 \f2 \li120 \b0
{\i0 \fs20 \cf1 \f2 \b0
{\*\bkmkstart co_footnote_F43331276586_1}{\*\bkmkend co_footnote_F43331276586_1}
{\field {\*\fldinst HYPERLINK "#co_footnoteReference_F43331276586_ID0ECS" }{\fld
rslt
{\i0 \fs20 \sa0 \ul0 \cf5 \strike0 \f2 \b0 \sb0
43
}\i0 \fs20 \sa0 \cf5 \ul0 \f2 \strike0 \b0 \sb0 }}
}
}\i0 \ri120 \fs20 \ql \cf1 \f2 \li120 \b0 \intbl \cell \intbl
{\ri20 \i0 \fs18 \cf1 \f2 \li20 \b0 \qj
{\ri20 \i0 \fs18 \cf1 \f2 \li20 \b0 \qj
{\ri20 \i0 \fs18 \cf1 \f2 \li20 \b0 \qj
{\i0 \fs18 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb0
Id. at 105-06.
\par
}
}
}
}\i0 \ri20 \fs18 \sa0 \ul0 \cf1 \strike0 \f2 \li20 \b0 \sb0 \qj \intbl \cell \ro
w }
{\trowd \itap0 \trleft0
\clpadt20 \clpadft3 \clpadb100 \clpadfb3 \clpadl100 \clpadfl3 \clpadr20 \clpadfr
3 \clbrdrl \trql \clvertalt \cellx600
\clpadt20 \clpadft3 \clpadb90 \clpadfb3 \clpadl90 \clpadfl3 \clpadr20 \clpadfr3
\clbrdrr \trql \cellx10080
\intbl
{\ri120 \i0 \ql \fs20 \cf1 \f2 \li120 \b0
{\i0 \fs20 \cf1 \f2 \b0
{\*\bkmkstart co_footnote_F44331276586_1}{\*\bkmkend co_footnote_F44331276586_1}
{\field {\*\fldinst HYPERLINK "#co_footnoteReference_F44331276586_ID0E2V" }{\fld
rslt
{\i0 \fs20 \sa0 \ul0 \cf5 \strike0 \f2 \b0 \sb0
44
}\i0 \fs20 \sa0 \cf5 \ul0 \f2 \strike0 \b0 \sb0 }}
}
}\i0 \ri120 \fs20 \ql \cf1 \f2 \li120 \b0 \intbl \cell \intbl
{\ri20 \i0 \fs18 \cf1 \f2 \li20 \b0 \qj
{\ri20 \i0 \fs18 \cf1 \f2 \li20 \b0 \qj
{\ri20 \i0 \fs18 \cf1 \f2 \li20 \b0 \qj
{\i0 \fs18 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb0
Inside Oracle\rquote s Revised PeopleSoft Bid, CRM Buyer, May 17, 2004, http://w
ww.crmbuyer.com/story/33844.html.
\par
}
}
}
}\i0 \ri20 \fs18 \sa0 \ul0 \cf1 \strike0 \f2 \li20 \b0 \sb0 \qj \intbl \cell \ro
w }
{\trowd \itap0 \trleft0
\clpadt20 \clpadft3 \clpadb100 \clpadfb3 \clpadl100 \clpadfl3 \clpadr20 \clpadfr
3 \clbrdrl \trql \clvertalt \cellx600
}
}\i0 \ri120 \fs20 \ql \cf1 \f2 \li120 \b0 \intbl \cell \intbl
{\ri20 \i0 \fs18 \cf1 \f2 \li20 \b0 \qj
{\ri20 \i0 \fs18 \cf1 \f2 \li20 \b0 \qj
{\ri20 \i0 \fs18 \cf1 \f2 \li20 \b0 \qj
{\i0 \fs18 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb0
Beck, supra note 30, at 86.
\par
}
}
}
}\i0 \ri20 \fs18 \sa0 \ul0 \cf1 \strike0 \f2 \li20 \b0 \sb0 \qj \intbl \cell \ro
w }
{\trowd \itap0 \trleft0
\clpadt20 \clpadft3 \clpadb100 \clpadfb3 \clpadl100 \clpadfl3 \clpadr20 \clpadfr
3 \clbrdrl \trql \clvertalt \cellx600
\clpadt20 \clpadft3 \clpadb90 \clpadfb3 \clpadl90 \clpadfl3 \clpadr20 \clpadfr3
\clbrdrr \trql \cellx10080
\intbl
{\ri120 \i0 \ql \fs20 \cf1 \f2 \li120 \b0
{\i0 \fs20 \cf1 \f2 \b0
{\*\bkmkstart co_footnote_F50331276586_1}{\*\bkmkend co_footnote_F50331276586_1}
{\field {\*\fldinst HYPERLINK "#co_footnoteReference_F50331276586_ID0EJD" }{\fld
rslt
{\i0 \fs20 \sa0 \ul0 \cf5 \strike0 \f2 \b0 \sb0
50
}\i0 \fs20 \sa0 \cf5 \ul0 \f2 \strike0 \b0 \sb0 }}
}
}\i0 \ri120 \fs20 \ql \cf1 \f2 \li120 \b0 \intbl \cell \intbl
{\ri20 \i0 \fs18 \cf1 \f2 \li20 \b0 \qj
{\ri20 \i0 \fs18 \cf1 \f2 \li20 \b0 \qj
{\ri20 \i0 \fs18 \cf1 \f2 \li20 \b0 \qj
{\i0 \fs18 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb0
Neil Sutton, PeopleSoft Shows its CEO the Door, Computer Dealer News, Oct. 15, 2
004, at 6.
\par
}
}
}
}\i0 \ri20 \fs18 \sa0 \ul0 \cf1 \strike0 \f2 \li20 \b0 \sb0 \qj \intbl \cell \ro
w }
{\trowd \itap0 \trleft0
\clpadt20 \clpadft3 \clpadb100 \clpadfb3 \clpadl100 \clpadfl3 \clpadr20 \clpadfr
3 \clbrdrl \trql \clvertalt \cellx600
\clpadt20 \clpadft3 \clpadb90 \clpadfb3 \clpadl90 \clpadfl3 \clpadr20 \clpadfr3
\clbrdrr \trql \cellx10080
\intbl
{\ri120 \i0 \ql \fs20 \cf1 \f2 \li120 \b0
{\i0 \fs20 \cf1 \f2 \b0
{\*\bkmkstart co_footnote_F51331276586_1}{\*\bkmkend co_footnote_F51331276586_1}
{\field {\*\fldinst HYPERLINK "#co_footnoteReference_F51331276586_ID0ERE" }{\fld
rslt
{\i0 \fs20 \sa0 \ul0 \cf5 \strike0 \f2 \b0 \sb0
51
}\i0 \fs20 \sa0 \cf5 \ul0 \f2 \strike0 \b0 \sb0 }}
}
}\i0 \ri120 \fs20 \ql \cf1 \f2 \li120 \b0 \intbl \cell \intbl
{\ri20 \i0 \fs18 \cf1 \f2 \li20 \b0 \qj
{\ri20 \i0 \fs18 \cf1 \f2 \li20 \b0 \qj
{\ri20 \i0 \fs18 \cf1 \f2 \li20 \b0 \qj
1.0&transitionType=DocumentItem&contextData=(sc.Search)" }{\fldrslt
{\i0 \fs18 \sa0 \ul0 \cf5 \strike0 \f2 \b0 \sb0
Delaware\rquote s Intermediate Standard for Defensive Tactics: Is There Substanc
e to Proportionality Review?, 44 Bus. Law. 247 (1989)
}\i0 \fs18 \sa0 \cf5 \ul0 \f2 \strike0 \b0 \sb0 }}
{\i0 \fs18 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb0
.
\par
}
}
}
}\i0 \ri20 \fs18 \sa0 \ul0 \cf1 \strike0 \f2 \li20 \b0 \sb0 \qj \intbl \cell \ro
w }
{\trowd \itap0 \trleft0
\clpadt20 \clpadft3 \clpadb100 \clpadfb3 \clpadl100 \clpadfl3 \clpadr20 \clpadfr
3 \clbrdrl \trql \clvertalt \cellx600
\clpadt20 \clpadft3 \clpadb90 \clpadfb3 \clpadl90 \clpadfl3 \clpadr20 \clpadfr3
\clbrdrr \trql \cellx10080
\intbl
{\ri120 \i0 \ql \fs20 \cf1 \f2 \li120 \b0
{\i0 \fs20 \cf1 \f2 \b0
{\*\bkmkstart co_footnote_F54331276586_1}{\*\bkmkend co_footnote_F54331276586_1}
{\field {\*\fldinst HYPERLINK "#co_footnoteReference_F54331276586_ID0EOH" }{\fld
rslt
{\i0 \fs20 \sa0 \ul0 \cf5 \strike0 \f2 \b0 \sb0
54
}\i0 \fs20 \sa0 \cf5 \ul0 \f2 \strike0 \b0 \sb0 }}
}
}\i0 \ri120 \fs20 \ql \cf1 \f2 \li120 \b0 \intbl \cell \intbl
{\ri20 \i0 \fs18 \cf1 \f2 \li20 \b0 \qj
{\ri20 \i0 \fs18 \cf1 \f2 \li20 \b0 \qj
{\ri20 \i0 \fs18 \cf1 \f2 \li20 \b0 \qj
{\i0 \fs18 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb0
There was a second line of argument as well. In an affidavit filed in the Delawa
re litigation, one of the authors of this case noted the potential application o
f an evolving doctrine under Section 141(a) of the Delaware corporate code, whic
h mandates that the corporation \u8220\'3fshall be managed by or under the direc
tion of a board of directors.\u8221\'3f In its 1998 decision Quickturn v. Mentor
Graphics, the Delaware Supreme Court interpreted this provision to mean that a
board cannot tie the hands of a future board: \u8220\'3f[T]o the extent that a c
ontract, or a provision thereof, purports to require a board to act or not act i
n such a fashion as to limit the exercise of fiduciary duties, it is invalid and
unenforceable,\u8221\'3f
}
{\field {\*\fldinst HYPERLINK "http://www.westlaw.com/Link/Document/FullText?fin
dType=Y&serNum=1999037322&pubNum=162&originationContext=document&vr=3.0&rs=cblt1
.0&transitionType=DocumentItem&contextData=(sc.Search)#co_pp_sp_162_1292" }{\fld
rslt
{\i0 \fs18 \sa0 \ul0 \cf5 \strike0 \f2 \b0 \sb0
Quickturn Design Sys. v. Mentor Graphics Corp., 721 A.2d 1281, 1292 (Del. Super.
Ct. 1998)
}\i0 \fs18 \sa0 \cf5 \ul0 \f2 \strike0 \b0 \sb0 }}
{\i0 \fs18 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb0
(quoting
}
{\field {\*\fldinst HYPERLINK "http://www.westlaw.com/Link/Document/FullText?fin
dType=Y&serNum=1994040050&pubNum=162&originationContext=document&vr=3.0&rs=cblt1
.0&transitionType=DocumentItem&contextData=(sc.Search)#co_pp_sp_162_51" }{\fldrs
lt
{\i0 \fs18 \sa0 \ul0 \cf5 \strike0 \f2 \b0 \sb0
Paramount Commc\rquote n v. QVC Network, 637 A.2d 34, 51 (Del. Super. Ct. 1993)
}\i0 \fs18 \sa0 \cf5 \ul0 \f2 \strike0 \b0 \sb0 }}
{\i0 \fs18 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb0
). The CAP seemed to do precisely this. In fact, PeopleSoft acknowledged in SEC
filings that because of the CAP \u8220\'3fit is possible that the newly elected
[Oracle] board might refrain from taking certain actions it might otherwise deci
de to take relating to products and services.\u8221\'3f Of course, the Quickturn
language read literally would seem to prohibit any contract that did not involv
e a spot transaction - say, a ten-year lease. One way to narrow the scope of the
language in Quickturn would be to distinguish between contracts that tied the h
ands of both the current board and the future board (such as a ten-year lease) a
nd contracts that only tied the hands of a future board (such as the CAP).
\par
}
}
}
}\i0 \ri20 \fs18 \sa0 \ul0 \cf1 \strike0 \f2 \li20 \b0 \sb0 \qj \intbl \cell \ro
w }
{\trowd \itap0 \trleft0
\clpadt20 \clpadft3 \clpadb100 \clpadfb3 \clpadl100 \clpadfl3 \clpadr20 \clpadfr
3 \clbrdrl \trql \clvertalt \cellx600
\clpadt20 \clpadft3 \clpadb90 \clpadfb3 \clpadl90 \clpadfl3 \clpadr20 \clpadfr3
\clbrdrr \trql \cellx10080
\intbl
{\ri120 \i0 \ql \fs20 \cf1 \f2 \li120 \b0
{\i0 \fs20 \cf1 \f2 \b0
{\*\bkmkstart co_footnote_F55331276586_1}{\*\bkmkend co_footnote_F55331276586_1}
{\field {\*\fldinst HYPERLINK "#co_footnoteReference_F55331276586_ID0EAI" }{\fld
rslt
{\i0 \fs20 \sa0 \ul0 \cf5 \strike0 \f2 \b0 \sb0
55
}\i0 \fs20 \sa0 \cf5 \ul0 \f2 \strike0 \b0 \sb0 }}
}
}\i0 \ri120 \fs20 \ql \cf1 \f2 \li120 \b0 \intbl \cell \intbl
{\ri20 \i0 \fs18 \cf1 \f2 \li20 \b0 \qj
{\ri20 \i0 \fs18 \cf1 \f2 \li20 \b0 \qj
{\ri20 \i0 \fs18 \cf1 \f2 \li20 \b0 \qj
{\i0 \fs18 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb0
See Transcript of Telephone Conference at 26, Oracle v. PeopleSoft, No. 20377 (D
el. Ch. Dec. 9, 2004).
\par
}
}
}
}\i0 \ri20 \fs18 \sa0 \ul0 \cf1 \strike0 \f2 \li20 \b0 \sb0 \qj \intbl \cell \ro
w }
{\trowd \itap0 \trleft0
\clpadt20 \clpadft3 \clpadb100 \clpadfb3 \clpadl100 \clpadfl3 \clpadr20 \clpadfr
3 \clbrdrl \trql \clvertalt \cellx600
\clpadt20 \clpadft3 \clpadb90 \clpadfb3 \clpadl90 \clpadfl3 \clpadr20 \clpadfr3
\clbrdrr \trql \cellx10080
\intbl
{\ri120 \i0 \ql \fs20 \cf1 \f2 \li120 \b0
{\i0 \fs20 \cf1 \f2 \b0
{\*\bkmkstart co_footnote_F56331276586_1}{\*\bkmkend co_footnote_F56331276586_1}
{\field {\*\fldinst HYPERLINK "#co_footnoteReference_F56331276586_ID0EVM" }{\fld
rslt
{\i0 \fs20 \sa0 \ul0 \cf5 \strike0 \f2 \b0 \sb0
56
}\i0 \fs20 \sa0 \cf5 \ul0 \f2 \strike0 \b0 \sb0 }}
}
}\i0 \ri120 \fs20 \ql \cf1 \f2 \li120 \b0 \intbl \cell \intbl
{\ri20 \i0 \fs18 \cf1 \f2 \li20 \b0 \qj
{\ri20 \i0 \fs18 \cf1 \f2 \li20 \b0 \qj
{\ri20 \i0 \fs18 \cf1 \f2 \li20 \b0 \qj
{\i0 \fs18 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb0
Transcript of Testimony of Larry Ellison, supra note 5, at 1243.
\par
}
}
}
}\i0 \ri20 \fs18 \sa0 \ul0 \cf1 \strike0 \f2 \li20 \b0 \sb0 \qj \intbl \cell \ro
w }
{\trowd \itap0 \trleft0
\clpadt20 \clpadft3 \clpadb100 \clpadfb3 \clpadl100 \clpadfl3 \clpadr20 \clpadfr
3 \clbrdrl \trql \clvertalt \cellx600
\clpadt20 \clpadft3 \clpadb90 \clpadfb3 \clpadl90 \clpadfl3 \clpadr20 \clpadfr3
\clbrdrr \trql \cellx10080
\intbl
{\ri120 \i0 \ql \fs20 \cf1 \f2 \li120 \b0
{\i0 \fs20 \cf1 \f2 \b0
{\*\bkmkstart co_footnote_F57331276586_1}{\*\bkmkend co_footnote_F57331276586_1}
{\field {\*\fldinst HYPERLINK "#co_footnoteReference_F57331276586_ID0EBN" }{\fld
rslt
{\i0 \fs20 \sa0 \ul0 \cf5 \strike0 \f2 \b0 \sb0
57
}\i0 \fs20 \sa0 \cf5 \ul0 \f2 \strike0 \b0 \sb0 }}
}
}\i0 \ri120 \fs20 \ql \cf1 \f2 \li120 \b0 \intbl \cell \intbl
{\ri20 \i0 \fs18 \cf1 \f2 \li20 \b0 \qj
{\ri20 \i0 \fs18 \cf1 \f2 \li20 \b0 \qj
{\ri20 \i0 \fs18 \cf1 \f2 \li20 \b0 \qj
{\i0 \fs18 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb0
Transcript of Testimony of Safra Catz, supra note 3, at 1556.
\par
}
}
}
}\i0 \ri20 \fs18 \sa0 \ul0 \cf1 \strike0 \f2 \li20 \b0 \sb0 \qj \intbl \cell \ro
w }
{\trowd \itap0 \trleft0
\clpadt20 \clpadft3 \clpadb100 \clpadfb3 \clpadl100 \clpadfl3 \clpadr20 \clpadfr
3 \clbrdrb \clbrdrl \trql \clvertalt \cellx600
\clpadt20 \clpadft3 \clpadb90 \clpadfb3 \clpadl90 \clpadfl3 \clpadr20 \clpadfr3
\clbrdrb \clbrdrr \trql \cellx10080
\intbl
{\ri120 \i0 \ql \fs20 \cf1 \f2 \li120 \b0
{\i0 \fs20 \cf1 \f2 \b0
{\*\bkmkstart co_footnote_F58331276586_1}{\*\bkmkend co_footnote_F58331276586_1}
{\field {\*\fldinst HYPERLINK "#co_footnoteReference_F58331276586_ID0EEQ" }{\fld
rslt
{\i0 \fs20 \sa0 \ul0 \cf5 \strike0 \f2 \b0 \sb0
58
}\i0 \fs20 \sa0 \cf5 \ul0 \f2 \strike0 \b0 \sb0 }}
}
}\i0 \ri120 \fs20 \ql \cf1 \f2 \li120 \b0 \intbl \cell \intbl
{\ri20 \i0 \fs18 \cf1 \f2 \li20 \b0 \qj
{\ri20 \i0 \fs18 \cf1 \f2 \li20 \b0 \qj
{\ri20 \i0 \fs18 \cf1 \f2 \li20 \b0 \qj
{\i0 \fs18 \sa0 \ul0 \cf1 \strike0 \f2 \b0 \sb0
Press Release, Oracle Corp., Oracle Announces Best and Final PeopleSoft Offer of
$24 per Share (Nov. 1, 2004), available at http:// www.oracle.com/corporate/pre
ss/2004_nov/latest_psft1.html.
\par
}
}
}
}\i0 \ri20 \fs18 \sa0 \ul0 \cf1 \strike0 \f2 \li20 \b0 \sb0 \qj \intbl \cell \ro
w }}{
{\trowd \itap0 \trleft0
\clpadt20 \clpadft3 \clpadl100 \clpadfl3 \clpadr20 \clpadfr3 \clbrdrt \clbrdrb \
clbrdrl \trql \cellx4320
\clpadt20 \clpadft3 \clpadl100 \clpadfl3 \clpadr20 \clpadfr3 \clbrdrt \clbrdrb \
clbrdrr \trql \cellx10080
\intbl
{\ri44 \i0 \ql \fs16 \cf20 \f2 \li44 \b1
{\i0 \fs16 \sa0 \ul0 \cf20 \strike0 \f2 \b1 \sb0
End of Document
}
}\i0 \ri44 \fs16 \ql \sa0 \ul0 \cf20 \strike0 \f2 \li44 \b1 \sb0 \intbl \cell \i
ntbl
{\ri44 \i0 \fs16 \cf20 \f2 \li44 \qr \b0
{\i0 \fs16 \sa0 \ul0 \cf20 \strike0 \f2 \b0 \sb0
\u169\'3f 2011 Thomson Reuters. No claim to original U.S. Government Works.
}
}\i0 \ri44 \fs16 \sa0 \ul0 \cf20 \strike0 \f2 \li44 \qr \b0 \sb0 \intbl \cell \r
ow }}
}
}\sect }