Oracle Lacking PeopleSoft Stock

Oracle Corp. said Wednesday that it extended the deadline for PeopleSoft Inc. shareholders to tender their shares by two days after falling short of the 90% needed to complete its $10.3-billion purchase of the software maker.

Investors with about 89.4% of PeopleSoft stock tendered their shares by Tuesday, the previous deadline, Redwood City, Calif.-based Oracle said. It extended its $26.50-a-share offer to 5 p.m. today.

If Oracle fails to get the shares it needs this week, the company probably will extend the deadline, spokesman Bob Wynne said. After a 18-month takeover fight, Oracle already has control of Pleasanton, Calif.-based PeopleSoft and last week took over the board after appointing four directors, giving it a majority.

A shareholder vote will be needed to complete the transaction if the extensions don’t produce the required number of shares, delaying the close of the deal by four to six weeks.

In the meantime, Oracle is proceeding with plans to combine the companies’ operations. The two are working on a joint version of their software, Oracle Co-Presidents Charles Phillips and Safra Catz wrote in a letter posted Tuesday on Oracle’s website. Oracle plans a Jan. 18 webcast to discuss the combined company.

The purchase turned Oracle into the world’s second-largest maker of business management software, which is used to handle tasks such as payroll and human resources. SAP of Germany is the largest.

The acquisition created a company with more than 22,750 customers and more than 53,800 employees.

Oracle Chief Executive Larry Ellison has set a Jan. 14 deadline to announce his integration plan.

Staff will be cut from both companies, although more PeopleSoft employees will be fired, Ellison said after the Dec. 13 deal was announced.

Shares of Oracle rose 4 cents to $13.10 on Nasdaq.