Told you so, says PeopleSoft, as antitrust investigators request further details
vnunet.com, 01 Jul 2003
Oracle is facing a further investigation of its bid for rival PeopleSoft, after antitrust investigators at the US Department of Justice (DoJ) asked for more information.
Oracle claimed that it fully expected the request, and does not anticipate competition issues to derail the bid.
"We remain optimistic that the DoJ will conclude that this transaction is not anti-competitive, and that we will complete the transaction in a timely manner," said Oracle spokesman Jim Finn.
Since the database giant upped its bid to $6.3bn, the PeopleSoft board has seen the threat of antitrust action as its best defence.
After Oracle revealed the request from the DoJ, PeopleSoft said in a statement: "Oracle's announcement that the Antitrust Division of the DoJ has requested additional information regarding Oracle's unsolicited tender offer is not a surprise.
"PeopleSoft has consistently maintained that the proposed combination of PeopleSoft and Oracle faces substantial regulatory delays and a significant likelihood that the transaction would be prohibited."
In the US, the State of Connecticut has already filed a lawsuit against Oracle, alleging that the deal will damage its investment in PeopleSoft software.
Oracle, meanwhile, is trying to reassure PeopleSoft's customers. It has promised to continue support for the latest versions of PeopleSoft software for at least 10 years, and is offering additional support if they choose to migrate to Oracle's business software.
"It is not necessary for PeopleSoft customers to migrate to a new platform for this acquisition to be compelling for our shareholders and for PeopleSoft customers," said Chuck Phillips, executive vice president at Oracle.
"Keeping PeopleSoft customers satisfied - on whichever product they choose to use - is a top priority."
As part of its campaign, Oracle will ramp up its advertising and contact every PeopleSoft customer to confirm that the company will not can PeopleSoft products and will not force PeopleSoft customers to convert to Oracle E-Business Suite applications.
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