Oracle's Larry Ellison: Trying to expand

Both firms have taken out full-page advertisements in leading newspapers to plead their case before customers and shareholders.

PeopleSoft chief executive Craig Conway rejected Oracle's $5.1bn (�3.1bn) offer, claiming such a deal would be blocked by competition authorities.

And he accuses Oracle of deliberately upsetting business momentum, calling the offer "a calculated approach to disrupt our business".

Oracle's friendly approach, meanwhile, has turned into a hostile takeover attempt and includes the promise of discontinuing all of PeopleSoft's products.

And Oracle printed a graph of PeopleSoft's falling share price and declining revenue growth under the headline 'Look what PeopleSoft management's done for you lately'.

Dirty tactics?

The firm's flamboyant leader, Larry Ellison, has appealed to PeopleSoft shareholders to demand a vote and overturn the board's veto of the deal.

PeopleSoft is pressing ahead with a takeover of JD Edwards

"PeopleSoft is doing everything it can to prevent its shareholders from voting," Mr Ellison said in a statement.

But PeopleSoft shareholders are thought to be demanding that Oracle raises the value of its bid by up to 25% before giving the deal serious consideration.

PeopleSoft's management, however, is pressing ahead regardless with their own takeover plans, sweetening a proposed deal with JD Edwards in the hope of sealing that deal in time to deter Oracle.

Fund managers meanwhile are growing increasingly frustrated by the spat.

"It seems both sides are desperately in need of adult supervision," one fund manager told Reuters on the condition of anonymity.