UPDATED: Oracle bid for PeopleSoft – announcement expected

The results of a hostile bid against PeopleSoft from the mighty Oracle are expected on Monday. There have been questions raised as to whether the US government will allow such a move due to possible competition issues, and the DOJ is expected to announce whether or not antitrust regulators will allow the move to take place.

It is expected that today (Monday) the DOJ will either initiate a formal investigation, for which it will request more information, or it will allow the move from Oracle to take place. A former official from the antitrust division of the DOJ has told news.com that "The DOJ will have no choice but to issue a second request for information if they feel (a takeover) raises competition issues". Oracle themselves have also said in a statement that they think there will be a request for more information. They have stated that "We have not yet received a second request from the Department of Justice ... However, considering the high profile nature of this transaction and the fact that DOJ just received the case less than two weeks ago, we fully expect to receive a second request".

Oracle thinks they will come out as the winners in this case, however, and have said that "We remain very optimistic that DOJ will conclude that this transaction is not anti-competitive and that we will complete the transaction in a timely manner". If information is requested there could be a wait of week, or even months. An antitrust lawyer has stated that "It doesn't take a rocket scientist to figure out that, if the state of Connecticut already filed an antitrust lawsuit, there is a good chance the DOJ will investigate".

Update: -The DOJ have requested Oracle give more information. Oracle have claimed that "We were not surprised given the size and scope of the transaction and the fact that PeopleSoft is also proposing its own transaction, which is undergoing regulatory review. It is important not to confuse process with outcome".

News source: News.com

News source: News.com - Justice Dept. wants more from Oracle

Report a problem with article
Previous Story

Vodafone Inks RealNetworks Deal

Next Story

Our breakfast with Bill G

-1 Comments - Add comment