U.S. judge gives Oracle greenlight to pursue PeopleSoft

TwistedMetal · Sep 10, 2004, 09:20 PM

After a three-month trial a U.S. Federal Court judge has ruled that Oracle Corp.'s hostile pursuit of bitter rival PeopleSoft Inc. does not violate antitrust regulations.

Judge Vaughn Walker ruled that the US$7.7-billion hostile bid, first commenced in June 2003, would not give Oracle an unfair monopoly if successful.

Oracle is the world's second-largest software maker behind Microsoft Corp., specializing in enterprise applications for managing everything from warehousing operations to databases.

PeopleSoft is a close rival that develops software for accounting, human resources management and supply chain management. Last year it expanded its operations with the US$1.7-billion acquisition of another player in the industry, J.D. Edwards.

The takeover battle has been characterized by bitter rhetoric between PeopleSoft CEO Craig Conway and his former boss, Oracle chief Larry Ellison.

Friday's ruling is not the final word. The U.S. Department of Justice, which attempted to block the takeover attempt on antitrust grounds, still has a 60-day period in which to mount an appeal.

Also, a similar antitrust case in Europe is still pending.

Despite Friday's victory it also remains to be seen if Oracle will renew its efforts to acquire PeopleSoft. Its offer is still deemed insufficient by PeopleSoft's board despite having been raised from an initial value of US$5.1 billion.

According to some analysts, the uncertainty of the situation leaves many customers unwilling to commit to a purchase of PeopleSoft's products, good news for other rivals such as SAP.

Source: Ottawa Business Journal

Sep 10, 2004, 09:20 PM	#1
TwistedMetal MC John-117 Join Date: Jul 2003 Location: Phoenix, Arizona Posts: 728 Rep Power: 0	U.S. judge gives Oracle greenlight to pursue PeopleSoft After a three-month trial a U.S. Federal Court judge has ruled that Oracle Corp.'s hostile pursuit of bitter rival PeopleSoft Inc. does not violate antitrust regulations. Judge Vaughn Walker ruled that the US$7.7-billion hostile bid, first commenced in June 2003, would not give Oracle an unfair monopoly if successful. Oracle is the world's second-largest software maker behind Microsoft Corp., specializing in enterprise applications for managing everything from warehousing operations to databases. PeopleSoft is a close rival that develops software for accounting, human resources management and supply chain management. Last year it expanded its operations with the US$1.7-billion acquisition of another player in the industry, J.D. Edwards. The takeover battle has been characterized by bitter rhetoric between PeopleSoft CEO Craig Conway and his former boss, Oracle chief Larry Ellison. Friday's ruling is not the final word. The U.S. Department of Justice, which attempted to block the takeover attempt on antitrust grounds, still has a 60-day period in which to mount an appeal. Also, a similar antitrust case in Europe is still pending. Despite Friday's victory it also remains to be seen if Oracle will renew its efforts to acquire PeopleSoft. Its offer is still deemed insufficient by PeopleSoft's board despite having been raised from an initial value of US$5.1 billion. According to some analysts, the uncertainty of the situation leaves many customers unwilling to commit to a purchase of PeopleSoft's products, good news for other rivals such as SAP. Source: Ottawa Business Journal __________________ [color=red][/color]