PeopleSoft urges rejection of Oracle’s takeover bid

PeopleSoft Inc. urged its stockholders on Friday to reject Oracle Corp.’s unsolicited $6.3 billion takeover offer, saying the price was too low and citing the possibility that federal regulators might object to the deal between the business software makers.

PeopleSoft said its board of directors had voted unanimously to recommend rejection of the hostile bid which was sweetened earlier this week by more than $1 billion over the initial $5.1 billion offer.

But PeopleSoft president and chief executive Craig Conway said Friday even the sweetened offer was inadequate. PeopleSoft board voted unanimously to advise shareholders to refuse to cash in their shares on or before the July 7 deadline.

Pharmaceutical

AstraZeneca pleads guilty to violating marketing law

AstraZeneca Pharmaceuticals pleaded guilty Friday to violating a federal drug marketing law and will pay $355 million to settle allegations of illegal pricing and marketing of the prostate cancer drug Zoladex.

The Wilmington, Del.-based company pleaded guilty in U.S. District Court to conspiring to violate the marketing law by giving free samples of the drug to urologists, who then submitted claims for payment for the prescriptions to Medicare, Medicaid and other federally funded insurance programs, federal prosecutors said.

The claims created a loss of nearly $40 million for those programs, they said.

The Food and Drug Administration said AstraZeneca engaged in a “massive conspiracy” by illegally pricing and marketing Zoladex.

Automotive

GM to accelerate effort to boost its finances

General Motors Corp. said Friday it plans to sell about $10 billion in debt and other securities as part of an effort to improve its financial flexibility and help fund its lagging U.S. pension plans.

In addition, GM’s finance arm, General Motors Acceptance Corp., said it will raise about $3 billion for general corporate purposes as part of its ongoing funding plan for 2003.

GM’s shares rose on the news, and it prompted Moody’s Investors Service and Standard & Poor’s Ratings Services to affirm their debt ratings for the world’s largest automaker a day after Fitch Ratings lowered its marks.

Aviation

United aims to exit Chapter 11 by March

United Airlines intends to emerge from bankruptcy sometime between October and March, executives said Friday.

Officials of the world’s second-largest carrier reiterated in bankruptcy court that they’re targeting the fourth quarter of this year or the first quarter of 2004 to exit Chapter 11. But despite the recent recovery in revenue, they noted they still face significant challenges in order to return to profitability.

Citing better progress than expected, United executives first talked publicly last month about coming out of bankruptcy earlier than the original 18-month target, still a year off.

Earnings

GE maintains forecast

General Electric Co. reaffirmed its profit forecast Friday for the second quarter and the year, after some analysts had trimmed their outlook for the company.

The Fairfield, Conn.-based industrial and financial services giant expects earnings of 37 to 39 cents per share in the second quarter, chief financial officer Keith Sherin said at a meeting with investors and analysts. GE also maintained its earnings range of $1.55 to $1.70 per share for the year, which would represent an increase in net income of 3 to 13 percent.

Some analysts reduced their forecast of GE’s earnings for the year and next year ahead of the meeting Friday, although their new numbers still fell within GE’s wide range for 2003. The reductions typically involved a a penny or two per share.

Sherin said slow economic growth continues, but added that GE is positioned for an economic rebound. While volume at the plastics business is down, he cited strengths in other businesses such as NBC.