Silicon Valley: Software giant Oracle Corp on June 18 raised its offer in a growing hostile bid to buy rival PeopleSoft Inc, from $ 5.1 billion to about $ 6.3 billion.

Oracle also announced it was filing a suit against PeopleSoft, its board of directors and J D Edwards for their efforts to stave off the acquisition.

Oracle Corp said it would increase its cash tender offer to purchase all of the outstanding shares of PeopleSoft Inc to $ 19.50 per share. The offer price, a 29 per cent premium to the PeopleSoft stock price prior to the announcement of Oracle's cash offer on June 6, 2003 comes two days after PeopleSoft added cash to its original all-share deal with smaller rival J D Edwards & Co.

The battle between Oracle and PeopleSoft is seen as the most interesting take-over bid in the technology world since the dotcom bubble burst three years back.

"Oracle remains committed to acquiring PeopleSoft and will not be deterred by management's manoeuvres to maintain control of a company they do not own," said Oracle Chairman and chief executive officer (CEO) Larry Ellison.

"Contrary to what PeopleSoft management would have you believe, Oracle intends to fully support PeopleSoft customers and products for many years to come. Satisfying those customers is the key to the success of this acquisition."

PTI