Oracle faces lawsuit over PeopleSoft pursuit
Oracle is to be sued by the US authorities over its decision to try and buy fellow software company PeopleSoft in a £5bn bid.
Link: US government could block Oracle bid
In a lawsuit taken out with seven states, the Department of Justice said the proposed takeover would stifle competition and create a monopoly.
PeopleSoft subsequently called on Oracle to abandon its bid.
It said Oracle should drop the proposed deal ‘now that the anti-trust day of reckoning has arrived’.
However, Oracle refused to back down and said it would challenge the decision. It said the government’s lawsuit was ‘inconsistent with the overwhelming evidence of intense competition in the markets we serve’.