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Technology Stocks : PSFT - 1999: The "Make-It-or-Break-It" Year? -- Ignore unavailable to you. Want to Upgrade?

To: SemiBull who wrote (1235)	6/17/2003 8:32:06 PM
From: SemiBull	Read Replies (1) \| Respond to of 1274

PeopleSoft: J.D. Edwards Deal Would Boost Profit Some 50% Tuesday June 17, 11:50 am ET By Marcelo Prince NEW YORK -- PeopleSoft Inc. (NasdaqNM:PSFT - News) is telling investors its revised takeover agreement with J.D. Edwards & Co. will boost its operating earnings by about 50% next year. The Pleasanton, Calif., company's top executives are meeting this week with its large investors as they try to win support for its J.D. Edwards purchase and fend off a hostile takeover by Oracle Corp. . In their presentation to investors, a copy of which was filed Tuesday with the Securities & Exchange Commission, PeopleSoft officials predict the restructured J.D. Edwards deal and expanded cost cuts will add between 25 cents and 33 cents a share to 2004 earnings excluding acquisition-related charges. That would put those earnings, said PeopleSoft, between 84 cents and 92 cents a share. The mean estimate of analysts surveyed by Thomson First Call (News - Websites) is for PeopleSoft's 2004 earnings, excluding any impact from J.D. Edwards, to come in at 58 cents a share. On Monday, PeopleSoft revised its $1.75 billion pact with J.D. Edwards to include $863 million in cash and speed up the deal. PeopleSoft executives have said the J.D. Edwards deal would add to its earnings, but hadn't previously provided a detailed financial forecast. PeopleSoft's presentation is in keeping with analysts' calculations and its prediction that the combination with J.D. Edwards will result in annual cost savings of $150 million to $200 million. Tad Piper, software analyst at U.S. Bancorp Piper Jaffray, estimates the revised takeover deal will add between 21 cents and 30 cents a share to PeopleSoft's 2004 earnings. Although PeopleSoft faces significant risks in combining the two companies, " the terms of the new proposal offer more room for error," he wrote in a research note Tuesday. Meanwhile, Mr. Piper upgraded his investment rating on PeopleSoft's stock to " outperform" from "market perform" and cut his second-quarter expectations for the company, saying Oracle's offer will cause some customers to postpone purchases. The analyst doesn't own PeopleSoft shares. U.S. Bancorp has performed investment-banking services for PeopleSoft in the past 12 months or expects to provide such services in the next three months. -By Marcelo Prince; Dow Jones Newswires; 201-938-5244; marcelo.prince@dowjones.com