The bully down the street is still giving PeopleSoft (NASDAQ:PSFT) nightmares or, at least, something to worry about. Last Friday, Chief Financial Officer Kevin Parker sent an email to all employees, warning of possible disruptions by Oracle (NASDAQ:ORCL) during PeopleSoft's upcoming annual meeting. Management is concerned about further distractions, and the chaotic effect they may have on its business.

In case you've missed the drama, Oracle has been salivating over the possibility of gobbling up PeopleSoft for months now. Despite repeated rejections of a takeover, it just won't take no for an answer. It started with the discovery of devious Oracle emails and has continued on to a full-blown attempt to manipulate PeopleSoft's board of directors.

Parker had the following to say in an email to the SEC: "In the coming weeks, Oracle may nominate their own slate of board candidates and propose other actions for our annual meeting." He adds, "In our view, this would be consistent with their continuing efforts to disrupt our business and damage PeopleSoft."

So goes the latest episode in this Silicon Valley soap opera. Throughout the entire saga, PeopleSoft has tried to focus on maintaining its customers' and employees' confidence. In an attempt to execute its hostile takeover, Oracle has gone out of its way to disrupt and devalue its rival. However, PeopleSoft's resolve seems to be holding for now, as seen in its strong third-quarter results.

The true scorecard for how much Oracle has hurt PeopleSoft will be available to investors next Thursday when PeopleSoft releases fourth-quarter results. For now, onlookers can only watch and wait to see which company strikes out at the other next.

Jason Matthews is waiting for a hostile takeover of his dirty laundry, but so far no one has made an offer. He welcomes your feedback.