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CA: California employee pension fund tenders PeopleSoft shares to Oracle
Computerworld ^ | NOVEMBER 19, 2004 | Nancy Weil

Posted on 11/19/2004 12:04:33 PM PST by Ernest_at_the_Beach


The deadline for shares to be tendered is midnight tonight


NOVEMBER 19, 2004 - The California Employees' Retirement System (Calpers) is tendering its 1.5 million PeopleSoft Inc. shares to Oracle Corp., giving the hostile suitor a boost in the final days of its takeover bid.

Calpers' board voted on Wednesday afternoon to tender the shares, said spokesman Brad Pacheco. "Generally speaking, we just felt it made economic sense and it was a fair price," he said of Calpers' decision and Oracle's bid for PeopleSoft.

Oracle's final offer stands at $24 per share for all outstanding shares of its rival. That bid expires at midnight EST Friday. The deadline has in recent days prompted a number of shareholders to tender their shares to Oracle, although Private Capital Management Inc., the largest PeopleSoft shareholder, has thus far refused to do that.

Calpers, based in Sacramento, is the largest U.S. pension fund, and while it is a relatively small PeopleSoft shareholder, its decision helps Oracle in its takeover attempt and adds to the mounting pressure on other shareholders. Tendering shares does not mean that shareholders have to sell to Oracle at its bid price, but such action signals support for the takeover and could motivate PeopleSoft's board to enter discussions with Oracle regarding the bid.

However, as of yesterday, rancor and anger continued to dominate in what has been a nasty back-and-forth between the companies.

Oracle board Chairman Jeffrey Henley on Thursday issued a letter to PeopleSoft shareholders, telling them that it is time for them to decide if they want to accept Oracle's offer. The letter, posted at Oracle's Web site, was direct and pointed (see story).

In the letter, Oracle officials said: "The PeopleSoft board has for 17 months acted to deny stockholders the opportunity to consider our offer. They have failed to deliver an alternative transaction to deliver value to stockholders, and seem determined to use the poison pill indefinitely to deny stockholder choice. They have responded to our $24 best and final offer in characteristic fashion: by attempting to change the subject and issuing what analysts have described as unobtainable financial projections.

"We suggest you consider this track record when evaluating what PeopleSoft's board is telling you now and in deciding whether to tender your shares," Oracle's said. "We look forward to closing this transaction quickly. The choice is yours."


TOPICS: Business/Economy; Culture/Society; Extended News; Government; News/Current Events; US: California
KEYWORDS: calpers; oracle; pensionfunds; peoplesoft

1 posted on 11/19/2004 12:04:34 PM PST by Ernest_at_the_Beach
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To: NormsRevenge; Grampa Dave; SierraWasp; tubebender

fyi


2 posted on 11/19/2004 12:06:04 PM PST by Ernest_at_the_Beach (A Proud member of Free Republic ~~The New Face of the Fourth Estate since 1996.)
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To: Ernest_at_the_Beach

Ellison has pull, huh?

Who is CalPERS really looking out for here?


3 posted on 11/19/2004 12:07:34 PM PST by NormsRevenge (Semper Fi ...... The War on Terrorism is the ultimate 'faith-based' initiative.)
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To: Ernest_at_the_Beach

Basically, Peoplesoft's managers are screwing the shareholders in order to keep their jobs.


4 posted on 11/19/2004 12:07:45 PM PST by Rodney King (No, we can't all just get along)
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To: Rodney King

Who's Carly Fiorina pulling for?


5 posted on 11/19/2004 12:09:53 PM PST by NormsRevenge (Semper Fi ...... The War on Terrorism is the ultimate 'faith-based' initiative.)
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To: Ernest_at_the_Beach; Grampa Dave; Liz; NormsRevenge
Read a brief article in yesterday's Sacramento BEE ESS that CalPers is finally back and above where it was when the terrible Clinton slide started in the markets in spring 2000!!!

Yet I see they're still requiring employees and local government "Hangers On" to continue making contribs which had been suspended in the last half of "The Gay Nineties II !!!"

6 posted on 11/19/2004 12:12:47 PM PST by SierraWasp ("Moderation in the pursuit of justice is no virtue!" - Barry Goldwater when he was in his right mind)
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To: NormsRevenge; Ernest_at_the_Beach; SierraWasp

So much bribe money did the head pimp of Whoreacle have pay to CalPers to get this little favor?

CalPers, Whoreacle and the rats whose pensions are played games with, deserve each other.


7 posted on 11/19/2004 12:14:05 PM PST by Grampa Dave (FNC/ABCNNBCBS & the MSM fishwraps are the Rathering Fraudcasters of America!)
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To: Grampa Dave

I would imagine that Ellison might have spread a few crumbs from his enormous cash holdings.


8 posted on 11/19/2004 12:17:12 PM PST by Ernest_at_the_Beach (A Proud member of Free Republic ~~The New Face of the Fourth Estate since 1996.)
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To: Ernest_at_the_Beach

Like his check to the former governor of California and then one to the crook, who is the CA AG?


9 posted on 11/19/2004 12:18:30 PM PST by Grampa Dave (FNC/ABCNNBCBS & the MSM fishwraps are the Rathering Fraudcasters of America!)
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To: Ernest_at_the_Beach; Grampa Dave; Liz; NormsRevenge
Here's what I was talking about:

CalPERS climbs back up

By Gilbert Chan Published 2:15 am PST Thursday, November 18, 2004

After the stock market downturn squeezed billions out of the California Public Employees' Retirement System in recent years, the pension fund has soared to record heights again.

Chief Investment Officer Mark Anson told trustees on Wednesday that assets reached $177.8 billion this week, finally surpassing the previous high of $176 billion in 2000.

The bear market later wrung roughly $30 billion in value out of the assets. But last fiscal year, CalPERS reversed a string of losses to post a strong 16.7 percent gain and add $22.7 billion to its portfolio.

In the past two months, Cal-PERS earned $10 billion, fueled by gains in corporate and high-yield bonds, stocks and real estate. The fund provides retirement benefits to 1.4 million local and state government workers.

"We knew we would get back there. It was always a question of when," said CalPERS President Sean Harrigan.

He said the gains will help improve the system's funding level. Since the market losses, Cal-PERS is funded at 84 percent for its state pension plans and 92 percent for its program for non-teaching employees. To help reduce the shortfall, contribution rates for most of its state pension plans have gone up.

10 posted on 11/19/2004 12:21:03 PM PST by SierraWasp ("Moderation in the pursuit of justice is no virtue!" - Barry Goldwater when he was in his right mind)
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To: SierraWasp; All
a little info here..

CalPERS Board Members

The Board's responsibilities include setting employer contribution rates, determining investment asset allocations, providing actuarial valuations, and much more.

However, the Board does not have the authority to add, change, or delete benefits without the concurrence of the Legislature.

Sean Harrigan
President
Rob Feckner
Vice President

Board members
Sidney L. Abrams
Philip Angelides
Willie Brown, Jr.
Robert F. Carlson
George Diehr
Priya Sara Mathur
Michael T. Navarro
Mike Quevedo, Jr.
Kurato Shimada
Charles P. Valdes
Steve Westly

Dated: 05-07-2004

11 posted on 11/19/2004 12:21:18 PM PST by NormsRevenge (Semper Fi ...... The War on Terrorism is the ultimate 'faith-based' initiative.)
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To: Grampa Dave; NormsRevenge

Norm might know about that, I don't.


12 posted on 11/19/2004 12:21:42 PM PST by Ernest_at_the_Beach (A Proud member of Free Republic ~~The New Face of the Fourth Estate since 1996.)
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To: Grampa Dave

Lockyer .. don't hear much from him of late.

Lockyer is probably not wanting the spotlight anywhere near him as the Perata FBI probe and Grand Jury are going down.

Angelides is deep in this CalPERS reform movement the last few years.

These guys were all 'leaders' of the Rat pack in the legislature and have ripped this state off with their corrupt ways and influence peddling..

Westly, the eBay boy must be loving it, Garamendi too. Their political odds get better every day.


13 posted on 11/19/2004 12:27:41 PM PST by NormsRevenge (Semper Fi ...... The War on Terrorism is the ultimate 'faith-based' initiative.)
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To: Ernest_at_the_Beach

To refresh your memory. Whoreacle gave our great AG $50,000 and herr Davis $25,000.

Lockyer returns Oracle's $50,000 contribution
... Later in the day, Oracle issued a statement saying Davis had decided to return a $25,000 contribution, but a ... KEYWORDS: BRIBE; CA; CALGOV2002; DAVIS; HUGHHEWITT; LOCKYEAR; ORACLE ...
www.freerepublic.com/focus/fr/680587/posts - 38k - Cached -


State official resigns after Oracle debacle - silicon.com
... handling of a $25,000 campaign contribution to Davis from Oracle. The campaign contributions were eventually returned ... Oracle 'bribe' scandal closes Californian IT department ...
management.silicon.com/government/0,39024677,10004295,00.htm - 41k - Cached - More from this site


14 posted on 11/19/2004 12:31:33 PM PST by Grampa Dave (FNC/ABCNNBCBS & the MSM fishwraps are the Rathering Fraudcasters of America!)
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To: NormsRevenge; Grampa Dave

Thanks to both of you for the memories....


15 posted on 11/19/2004 12:33:59 PM PST by Ernest_at_the_Beach (A Proud member of Free Republic ~~The New Face of the Fourth Estate since 1996.)
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To: NormsRevenge

We haven't heard much from Lockliar, after he said that he couldn't okay the signed petitions to remove Davis. We created such a hellstrom, he backed away from that position and okayed the petitions.

It is time to remind people that he took a $50,000 bribe er donation from Whoreacle before we blew the whistle on that illegal procedure.


16 posted on 11/19/2004 12:34:33 PM PST by Grampa Dave (FNC/ABCNNBCBS & the MSM fishwraps are the Rathering Fraudcasters of America!)
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To: calcowgirl
This one's right up your alley.
17 posted on 11/19/2004 1:01:42 PM PST by Carry_Okie (There are people in power who are really stupid.)
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To: Carry_Okie

this is a no-brainer for CalPers - PSFT is trading at truly astronomical prices given the tender offer. CalPers either takes the offer or lets the stock crash on Monday - a total violation of their fiduciary responsibility.


18 posted on 11/19/2004 1:26:59 PM PST by Steven W.
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To: Steven W.
It may be a no-brainer for CalPers, but it's begging for anti-trust action that may cost them on that investment.
19 posted on 11/19/2004 1:32:42 PM PST by Carry_Okie (There are people in power who are really stupid.)
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To: Rodney King
Basically, Peoplesoft's managers are screwing the shareholders in order to keep their jobs.

Basically, by holding off they have driven the stock price up. A comparison of Oracle, Peoplesoft and the NASDAQ doesn't support your claim. I'll try to post it below from Yahoo over the last two years. (The takeover is about 17 months old at this point). I would claim that to this point the bid by Ellison and the response by PSFT mgmt. has had the effect of driving the PSFT price up. In other words the board (who decides this) is doing the right stuff to maximiize shareholder profit. If they turn it down PSFT will collapse, and I would then agree with your premise. But at this time I can not. The available facts don't support it.

20 posted on 11/19/2004 2:16:36 PM PST by Jack Black
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To: Jack Black

Right. I am supposing that the rise in Peoplsoft is due to the takeoever bid and that if the bid fails the price will collapse.


21 posted on 11/19/2004 2:18:32 PM PST by Rodney King (No, we can't all just get along)
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To: Rodney King

I think they will accept it soon.


22 posted on 11/19/2004 2:26:31 PM PST by Jack Black
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To: Carry_Okie

Thanks for the ping. Calpers shares represent only 0.4% of total psft shares.
Even if there are sleazy dealings, they can't make that much of a difference.


23 posted on 11/20/2004 2:29:37 AM PST by calcowgirl
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To: calcowgirl
Good, didn't know that. The last thing I want to see is former CIA geek, Larry Ellison, with a monopoly.
24 posted on 11/20/2004 7:00:42 AM PST by Carry_Okie (There are people in power who are really stupid.)
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To: Carry_Okie
The last thing I want to see is former CIA geek, Larry Ellison, with a monopoly.

I didn't mean to imply that Ellison won't get his monopoly, only that Calpers wouldn't necessarily be a decisive factor. See Also:

Oracle prevails in PeopleSoft tender

LOS ANGELES (CBS.MW) -- Oracle Corp. cleared a crucial hurdle Friday night in its $9.2 billion bid to take over PeopleSoft Inc., winning a clear majority of shares in its smaller rival following a direct appeal to investors.

More than 60 percent of PeopleSoft (PSFT: news, chart, profile) shares were tendered in favor of the $24-per-share offer, Oracle (ORCL: news, chart, profile) said in a statement released less than an hour after the deadline for accepting the bid expired.

(snip)


25 posted on 11/20/2004 10:19:30 AM PST by calcowgirl
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