IN THE COURTS

ORACLE SAYS CONWAY LIED TO ANALYSTS ABOUT TAKEOVER

Oracle Corp. opened its legal attack on PeopleSoft Inc.’s takeover defenses with charges that ousted Chief Executive Craig Conway lied to securities analysts about the impact of Oracle’s acquisition drive. Oracle attorney Michael Carroll grilled PeopleSoft director Steven Goldby on the reasons for Conway’s firing, suggesting the board was alarmed over deposition testimony he gave explaining alleged lies at a September 2003 analyst conference. Mr. Goldby said Mr. Conway misspoke in telling analysts that the Oracle takeover bid was no longer a factor in PeopleSoft’s ability to write new business. But he denied that the statements were lies, and said the company moved quickly to file a “corrected” transcript of Conway’s statements. The first witness summoned to the stand in what is expected to be a two-week trial, Mr. Goldby also fielded questions on the anti-takeover drive PeopleSoft launched to counter Oracle June 2003 tender offer. The target company hired lobbyists and solicited customers to come forward to offer evidence for antitrust actions that were ultimately filed by the U.S. Department of Justice and some states, he said. “We made the decision to be proactive,” Mr. Goldby said. Friday, the U.S. Justice Department said it would drop its antitrust challenge to the proposed merger of the two software makers, after suffering defeat in federal court in California. Oracle presented evidence on PeopleSoft’s antitrust campaign Monday as part of a lawsuit that says the company reacted improperly to its takeover bid.

– Dow Jones Newswires

VISA, MASTERCARD LOSE ANTITRUST APPEAL

The U.S. Supreme Court rebuffed a bid by Visa International Inc. and MasterCard International Inc. to continue barring 34,000 member banks from distributing credit cards of American Express Co. and Morgan Stanley’s Discover Card unit. American Express and Discover Financial Services called the high court’s action a victory for consumers and said they plan to complete partnerships with banks. “A new era of greater choice for U.S. consumers and financial institutions has begun,” said American Express chairman, Kenneth Chenault, in a statement. The justices in Washington left intact lower court rulings that the credit-card networks violated antitrust law by prohibiting their members from issuing the competing cards. Visa and MasterCard said lower courts erred in ruling that bank-member loyalty rules illegally squelched competition. Visa and MasterCard argued the rules prevented banks from making “side deals” with American Express or Discover that would undermine the networks. Banks are allowed to issue both MasterCard and Visa cards.

– Bloomberg News

PEOPLE

GOLISANO STEPS DOWN AS CEO

ROCHESTER, N.Y. – B. Thomas Golisano, the billionaire founder of Paychex Inc., said yesterday he has hired a longtime IBM Corp. executive, Jonathan Judge, to replace him as president and chief executive of the payroll-processing company.

Mr. Golisano, 62, retains the role of chairman at Paychex, one of the nation’s two biggest providers of payroll and human-resource services with 505,000 clients, 9,400 employees and sales of $1.3 billion.

Mr. Judge, 50, spent 25 years at IBM, becoming general manager of its $10 billion personal computing division.

He left in 2002 to take the helm at Crystal Decisions Inc., an information management software based in Vancouver, Canada. His job was eliminated in December when his management team merged the company with Business Objects, a business intelligence firm.

Mr. Golisano owns 10.3% of stock worth nearly $1.2 billion in Paychex.

He said he plans to devote more time to his political and philanthropic endeavors. He has contributed more than $50 million to Rochesterarea charities. In his third failed run for governor of New York in 2002, Mr. Golisano spent $75 million of his own money, the most in any non-presidential campaign in American history.

– Associated Press

REGULATORY

HONEYWELL TO PAY $2.15 MILLION TO SETTLE DISCRIMINATION LAWSUIT

NEWARK, N.J. – Honeywell International Inc. will pay $2.15 million to settle an age discrimination lawsuit by workers who were terminated or demoted in 1997 at AlliedSignal, which Honeywell acquired in 1999, the U.S. Equal Employment Opportunity Commission said yesterday. In the settlement, Honeywell denied any wrongdoing. The company and the EEOC, which sued on behalf of the workers in 2002, both said the agreement was made to avoid “the time, expense and uncertainty of further litigation.” Six of the workers will get awards ranging from $475,000 to $275,000, according to the settlement. About 25 others will each get $8,000, EEOC program analyst Edward McCaffrey said. Morris Township-based Honeywell said it decided to settle “in the best interest of the company.” Under the settlement, Honeywell will provide training on provisions of the Age Discrimination in Employment Act to all managers in the consumer products group and friction materials businesses. The ADEA makes it illegal to deny a person 40 or older any employment opportunity on the basis of age.

– Associated Press