PeopleSoft neglect would cost Oracle $1.56 billion

PeopleSoft's customer assurance program would cost Oracle $1.56 billion, if its archrival is ultimately successful in buying the company and fails to maintain support for PeopleSoft products over a specified period, according to a PeopleSoft filing with the U.S. Securities and Exchange Commission on Thursday.

PeopleSoft's customer assurance program is designed to reassure its customers that they have nothing to lose, whether or not Oracle is ultimately successful with its hostile takeover bid. Under the program, customers will receive their money back and more, should Oracle discontinue support for PeopleSoft products. Oracle and a PeopleSoft shareholders group also contend that the program makes it more costly for Oracle to consider buying the company.