Federal Lawyers Block Oracle Takeover of PeopleSoft

Justice Department lawyers have recommended the government block Oracle’s hostile takeover of rival PeopleSoft, citing anti-trust reasons.

The news comes the same week that PeopleSoft’s board chose to reject Oracle’s new offer of $26 per share, up from the original offer of $19.50 per share in the $9.4 billion hostile takeover bid. The PeopleSoft board called the offer inadequate, according to Information Week

"PeopleSoft's lobbying resulted in complicating and prolonging the Justice Department review of the merger," an Oracle spokesman said in a prepared statement. "While no decision has yet been made, Oracle believes this merger will eventually be approved."

The Justice Department lawyers are calling for the government to file suit to stop the merger, but Oracle executives expressed confidence that the deal will still go through. No final decision from the federal government is expected until early March.

"Our best and final price has been put on the table," Oracle co-president Charles Phillips said this week of the offer this week to PeopleSoft. "The reason it's taken so long is the huge amount of material the DOJ has requested. It began basic. We put forth a lot of facts that support our position, but you never know."

He added, "I can't get specific, but our acquisition strategy isn't limited to applications," he said. "All I can say is we are looking at all relevant markets that we already operate in."

You may like these other stories...

By Jason Bramwell Government leaders of eight of the world's largest economies pledged on June 18 to take a tougher stance on fighting tax evasion. The Group of Eight (G8) leaders, who met in Northern Ireland,...
By Jason BramwellAttorney General Eric Holder is scheduled to testify on May 15 before the House Judiciary Committee, one day after he announced the Justice Department has opened a criminal investigation of the IRS for...
By Jason BramwellPresident Barack Obama says he will not tolerate political bias at the IRS and promised to get to the bottom of the agency's admitted targeting of conservative groups, according to a May 13 article in...

Upcoming CPE Webinars

Jul 24
In this presentation Excel expert David Ringstrom, CPA revisits the Excel feature you should be using, but probably aren't. The Table feature offers the ability to both boost the integrity of your spreadsheets, but reduce maintenance as well.
Jul 31
In this session Excel expert David Ringstrom helps beginners get up to speed in Microsoft Excel. However, even experienced Excel users will learn some new tricks, particularly when David discusses under-utilized aspects of Excel.
Aug 5
This webcast will focus on accounting and disclosure policies for various types of consolidations and business combinations.