![]() ![]() With 60% of shareholders already willing to sell out to Oracle, the PeopleSoft board finally gave in at $26.50 a share in December 2014.įor Oracle, the deal was an undoubted success:PeopleSoft probably was underpriced, even at the price that it eventually struck with shareholders. In fact, over that time, Oracle made ten separate offers, each one improving on the offer that preceded it. And continued to do so for the following 18months. Probably still clinging to the notion that their company was worth closer to the original $52per share, they resisted the offer. Before the JD Edwards deal was confirmed, Oracle had made an offer of $16 per share - a premium of just 6%. When PeopleSoft made a bid to acquire a rival software firm, JD Edwards, for $1.7billion, Oracle CEO sensed the time was right to make his move. PeopleSoft shares had been in free fall for nearly two years when Oracle first expressed an interest in an acquisition.From a high of $56, the shares were trading at around $15 in 2003. ![]() At the time of writing over a decade later, its shares are priced lower than the time of the deal. In the end, maybe only Anheuser-Busch’s shareholders were the only ones to benefit.While they gained a 40% premium over the share price, AmBev - the company formed by the takeover - has never thrived. In the end, there was no need: When InBev increased its offer to $70 a share, the Anheuser-Busch board - under pressure from no less than Warren Buffett, then an investor in the company - rescinded. Undeterred, InBev upped the stakes by making a direct approach to Anheuser-Busch’s shareholders, asking them to submit a motion to the company that would fire its board members and replace them with an alternative board. In reality, they were probably protecting their own interests. InBev had a portfolio of beverages that included Stella Artois and Beck’s, and the notion that it was now going to add Budweiser to the list appeared to greatly appeal to industry investors: The shares of both companies rose on the news that InBev had made its approach.ĭespite offering a 30% premium over the share price, InBev’s offer was knocked back by the Anheuser-Busch directors.Ostensibly, this was because the price didn’t value their firm sufficiently. InBev was already the world’s largest brewer when it made an unexpected offer for Anheuser-Busch in June 2008. Below, we look at 5 examples of hostile takeovers over the years, and how the deals played out. ![]()
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