Bargaining in the Shadow of Peoplesoft’s (Defective) Poison Pill
By Guhan Subramanian, February 8, 2012
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This article notes that Oracle’s hostile takeover bid for Peoplesoft in 2004 will likely become the most famous M&A deal of the decade. The Peoplesoft poison pill, designed to stop such a hostile takeover, was defective, which led to an interesting dynamic in the merger negotiations. The author provides some lessons for future negotiations from the failures on both sides of this hostile takeover.
