Peoplesoft's management have rejected three bids

Oracle said it was lowering its offer by nearly 20% or $1.7bn due to its competitor's declining market value.

Peoplesoft shares have shed 24% this year as investors gave up hope that the buy out would take place because of an imminent anti-trust trial, reports say.

Peoplesoft's board of directors have rejected three Oracle offers, including one of a $9.4bn price.

Oracle since late February has been gearing up to fight an anti-trust suit brought by the US Department of Justice.

US authorities have called for an injunction to stop Oracle from buying Peoplesoft, saying the takeover would curb choice in the market place and push up prices.

But Oracle says it will show the regulator's charges are groundless during the trial scheduled to begin 7 June.