PeopleSoft specifies J.D. Edwards price

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

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. PeopleSoft will give each J.D. Edwards shareholder $14.74 in cash, 0.8243 of a PeopleSoft common share or a combination of the two, as directed by each shareholder. The combination, however, will be prorated--depending on how much cash or stock remains available for the exchange.

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.