Proxy Advisor Backs PeopleSoft Directors

Proxy advisory firm Institutional Shareholder Services recommended that PeopleSoft Inc. shareholders retain four current directors but said the board should drop a rebate plan adopted to fend off Oracle Corp.’s $9.4-billion takeover bid.

ISS recommended that shareholders vote for Chief Executive Craig Conway, George Battle, Frank Fanzilli Jr. and Cyril Yansouni.

The customer rebate program adopted last year, however, is no longer necessary now that regulators have moved to block the proposed takeover, ISS said. The plan would provide rebates to customers if a company taking over PeopleSoft does not provide a certain level of support.

Separately, Oracle said it had received objections from the European Commission related to its PeopleSoft bid and that it expected to address them. PeopleSoft said the objections supported its claim that the transaction probably would be prohibited.