Oracle faces antitrust probe over PeopleSoft bid
Oracle is facing further investigation of its bid for rival PeopleSoft, after the antitrust investigators at the US Department of Justice asked for more information.
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Oracle said it fully expected the request, and does not expect competition issues to derail the bid.
‘We remain optimistic that the Department of Justice 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 in a statement.
Since Oracle upped its bid for PeopleSoft to $6.3bn, the PeopleSoft board has seen the threat of antitrust action as its best defence.
After Oracle revealed the request from the Department of Justice, PeopleSoft said in a statement: ‘Oracle’s announcement that the Antitrust Division of the US Department of Justice 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, claiming that it will damage their investment in PeopleSoft’s software.
But Oracle is trying to reassure PeopleSoft’s customers, promising to continue support for the latest versions of its software for at least ten years, and 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. Keeping PeopleSoft customers satisfied – on whichever product they choose to use – is a top priority,’ said Chuck Phillips, executive vice president, Oracle, in a statement.
As part of its campaign, Oracle said it will ramp up advertising and directly contact every PeopleSoft customer to say that the company will not can PeopleSoft products and no PeopleSoft customer will be forced to convert to Oracle E-Business Suite applications.
Also just in: The PeopleSoft board of directors released another letter to stockholders reaffirming its position that Oracle’s tender offer is not in their best interests.