US DoJ Says It Won't Appeal Ruling On PeopleSoft Takeover Bid

by Glen Shapiro, LawAndTax-News.com, New York

05 October 2004

The US Department of Justice announced on Friday that it will not be appealing the recent decision by Judge Vaughn Walker to allow Oracle to continue with its efforts to merge with PeopleSoft.

Speaking to the US media last week, DoJ assistant attorney general, Hewitt Pate explained that:

"We have decided not to appeal the district court's decision. The evidence, including the testimony of numerous customers, strongly supported our case against this proposed transaction. While we disagree with the district court's disappointing decision, we respect the role of the courts in the United States merger review process."

Oracle chairman Jeff Henley welcomed the Justice Department's decision not to appeal Judge Walker's ruling, observing that:

"This affirms our longstanding belief that the transaction is not anticompetitive."

Meanwhile, observers have suggested that PeopleSoft's recent dismissal of its CEO, Craig Conway could suggest that the business software firm is about to accept its larger rival's hostile takeover bid. However, PeopleSoft itself has not yet given any indication that its position on the matter is softening.

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