Liste Newsletter

Index Performances
EPITEX, EPITA’S INDEX, Dec. 13, 2004: 82.55 (EPITEX set at 100 on Aug. 31, 2001)

News

MARKET FOCUS

U.S. stocks rallied on Monday, lifted by news that Oracle is finally buying PeopleSoft, its direct competitor in the enterprise software space, in a $10.3-billion deal.

Oracle had raised its offer for PeopleSoft to $26.50 a share, but the synergies between the two should help the new giant better compete against Europe’s SAP or even Microsoft, which wants to push further in that area.

In other merger news, Sprint and Nextel Communications are mulling a $36 billion deal, but Verizon and its British partner Vodafone could raise the ante for the provider of comprehensive wireless services.

OUTLOOK

The Federal Reserve is meeting on Tuesday amid widespread expectations the U.S. central bank would raise the benchmark fed funds rate for overnight inter-bank lending to 2.25 percent from 2.0 percent.

THE NUMBERS

The Dow Jones Industrial Average gained 95 points, or 0.9 percent, to 10,638. The Nasdaq composite index added 20 points, or 0.9 percent, to 2,148 while the Nasdaq-100 index of large capitalization tech and biotech stocks ended up 1.0 percent at 1,621.

Profile

Oracle finally succeeded in its bid to acquire PeopleSoft for $10.3 billion in a merger that will create a global giant in the enterprise software area.

“This merger gives Oracle even more scale and momentum,” said Oracle CEO Larry Ellison. “The real highlight of our most recent quarter was the 57 percent growth in our applications business, and this merger is going to make that applications business bigger and stronger.”

PeopleSoft is the world’s second-largest provider of enterprise application software with 12,750 customers in more than 25 industries and 150 countries.

Following the merger, which is expected to close in January, Oracle plans to enhance programs currently developed by PeopleSoft and its JD Edwards unit.

To succeed, Oracle had to raise its all-cash offer to $26.50 a share, up from $24 a share. The two companies are also ending pending litigation.

Meanwhile, Oracle reported a 35-percent increase in profits to 16 cents a share in the latest quarter vs. 12 cents a share in the year-ago quarter. Net income rose 32 percent to $815 million and revenues expanded by 10 percent to $2.76 billion.