Policy Change At PeopleSoft Angers Suitor OraclePolicy Change At PeopleSoft Angers Suitor Oracle

The fight over PeopleSoft Inc. continues. The software maker quietly made changes to its Customer Assurance Plan that it says is designed to protect clients in the event Oracle, or anyone else, buys PeopleSoft and kills off PeopleSoft's products.

PeopleSoft unveiled the plan not long after Oracle made its hostile takeover bid, now valued at $7.5 billion. Now clients could receive refunds of between two and five times license fees if PeopleSoft is acquired within two years, rather than one year, and the buyer makes certain changes to products and product support within four years, instead of two.

The changes, which a PeopleSoft spokesman said were made in the third quarter, before the company's earnings statement, are detailed in a Securities and Exchange Commission filing.

Oracle released a statement Friday calling the action "management entrenchment at its worst." The policy modifications "reflect PeopleSoft's blatant disregard for shareholder value and choice, preventing shareholders from exercising their right to determine board membership."

PeopleSoft defended the plan as being "good for customers, which is good for shareholders." PeopleSoft reported record revenue of $625.1 million for its third quarter, up from $471.2 million a year ago. License revenue jumped 32%, to $160.5 million.