PeopleSoft closes in J.D. Edwards

PeopleSoft detailed on Wednesday the exchange ratio it plans to use to complete its proposed acquisition of J.D. Edwards.

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The business software maker said the exchange ratio for the acquisition would give J.D. Edwards stockholders $14.74 per share for their common stock. That represents a slight increase from the original ratio of $14.10. The increase is attributed to a rise in PeopleSoft shares after the deal was announced in early June.

J.D. Edwards stockholders have the option of exchanging their shares for cash, PeopleSoft stock or a combination of stock and cash. Based on the outcome of a shareholder vote, J.D. Edwards stockholders will receive $14.74 in cash, 0.8243 of a PeopleSoft common share or a combination of the two.

Any fractional shares will be paid in cash, the company said. The exchange offer expires at midnight EDT on July 17.

The Pleasanton, Calif.-based company said it calculated the revised $14.74 offer by adding $7.05 in cash and $7.69, which it said represents the value of 0.43 of a PeopleSoft common share. That figure is based on the average closing price--$17.88--of PeopleSoft common stock over five consecutive trading days that ended July 15.

Rival software maker Oracle launched a hostile takeover bid for PeopleSoft a few days after PeopleSoft announced plans to acquire J.D. Edwards.