Software giant steps up coup bid

Oracle has named five candidates it plans to nominate for election to PeopleSoft's board of directors in its US$7.3 billion ($10.8 billion) hostile bid to take over the company.

The expected proxy fight at the approaching board meeting includes asking shareholders to also vote whether PeopleSoft board member Michael Maples, who joined the board from JD Edwards, should remain on the board. PeopleSoft acquired JD Edwards last July.

As part of its likely proxy fight, Oracle said if Maples did not stand for re-election, it would introduce a proposal to expand the number of PeopleSoft board seats to nine.

Such a move could potentially tip the balance of power in Oracle's favour if shareholders elect Oracle's candidates. PeopleSoft at present has an eight-member board, making a board coup tougher for Oracle.

Oracle, the world's second-biggest software maker, has made repeated advances to buy rival software maker PeopleSoft, even as European and US antitrust regulators pore over the details. A decision is unlikely until later in the year.

"We believe the incumbent PeopleSoft board of directors has consistently refused to consider its stockholders' best interests regarding the Oracle tender offer," said Jim Finn, an Oracle spokesman.

"This newly created directorship would be decided by the stockholders at the annual meeting, enabling the PeopleSoft stockholders to elect a majority of the board."

Other candidates include: Duke K. Bristow, an economist at the University of California, Los Angeles; Richard Clemmer, former CEO of PurchasePro.com; Roger Noall, ex-senior executive vice-president of KeyCorp; Laurence Paul, managing principal of Laurel Crown Capital, LLC; and Artur Raviv, a professor of finance at the Kellogg Graduate School of Management.

PeopleSoft was not available for comment.