The US Department of
Justice (DoJ) has requested additional information from
Oracle about its
planned acquisition of
Siebel Systems as part of
an anti-trust investigation into the deal.
The request is a strong reminder of the legal clash between
Oracle and the DoJ last year over the database giant's
purchase of
PeopleSoft. A federal
judge in San Francisco in the end ruled in favour of
Oracle.
"It sounds like a routine bureaucratic procedure that is normal in an
acquisition of this type," said Paul Hamerman, a research director covering
enterprise business applications at analyst firm
Forrester Research.
"I cannot imagine that the DoJ wants to take on Oracle in court after Oracle
won convincingly in the PeopleSoft case," he told
vnunet.com.
Oracle reached an agreement last month to acquire Siebel for $5.85bn. Chief
executive Larry Ellison testified before a federal judge last year that his
company had previously considered buying the CRM software
vendor.
The Siebel acquisition would make Oracle the largest CRM software company.
Oracle is in the process of beefing up its portfolio of enterprise applications,
and increasing the pressure on German firm
SAP in this market.
The $5.85bn deal would be the second largest acquisition by Oracle this year,
after the company closed the $10.3bn PeopleSoft
acquisition.
The DoJ had alleged that the PeopleSoft takeover would decrease competition
in the field of high-function human resources and financial management software
because it leaves only Oracle and SAP as major players.
Ellison, however, testified that he needed PeopleSoft
to compete effectively with SAP, as well as to counter the looming threat from
Microsoft.
After the judge approved Oracle's acquisition plans, the consensus was that
the DoJ had been too narrow in its complaint by limiting it to high-function HR
and financial management software.
In reality the enterprise application market is much broader, and a monopoly
in that particular niche market would have given Oracle significant power to
control the market unfairly.
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