EC Issues Objections To Oracle's PeopleSoft Takeover Bid

by Ulrika Lomas, for LawAndTax-News.com, Brussels

16 March 2004

It emerged yesterday that business software manufacturer, Oracle has received a list of antitrust objections to its planned hostile takeover of smaller rival, PeopleSoft, from the European Commission.

Although Oracle declined to give details of the objections expressed by the EC, it welcomed the clarification, and vowed to address the institution's competition concerns.

"We are pleased to have clarity on what the Commission's key issues are and we will address these issues through our written right of reply and in our hearing testimony. The process is ongoing and we are confident that the Commission will see how competitive this business truly is," Oracle spokesman Jim Finn explained to Reuters.

Meanwhile, PeopleSoft has also welcomed the release of the EC's statement of objections to the merger, arguing that:

"The EC action is consistent with the case filed by the United States Department of Justice and seven states challenging this transaction. The world's two leading antitrust enforcement agencies have now asserted that the combination of these two companies is anticompetitive."

Last week, the Department of Justice accused Oracle of withholding crucial information regarding discounts offered to customers in order to undercut PeopleSoft.

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