Oracle readying for battle over PeopleSoft

India Gazette Wednesday 11th February, 2004

The Oracle Corp. is reportedly preparing for a legal fight with the U.S. government over regulatory opposition to its $9.4 billion bid for PeopleSoft Inc.

Oracle founder and CEO Larry Ellison has informed several of his board members about the legal challenge if the U.S. Justice Department sues to block the bid, the Financial Times reported.

The Pleasanton, Calif.-based, PeopleSoft has already rejected the offer. Oracle is headquartered in Redwood Shores, Calif.

The possibility of a court fight grew as U.S. anti-trust officials moved a step closer to opposing the deal formally, the report said.

Government lawyers have reportedly concluded the takeover would impede competition in the market for business software applications and should be blocked.

The final decision now rests with Hewitt Pate, assistant U.S. attorney general for anti-trust. A ruling is expected by early March.