Oracle-Sun Deal Waits On DOJ Approval

Oracle had hoped the acquisition, announced in April, would quickly win the blessing of the U.S. Department of Justice. But late last month regulators asked for more information about the deal and indicated they needed more time to review it.

Two weeks ago Sun stockholders approved the acquisition at a special stockholders' meeting. That leaves approval from federal regulators as the only remaining hurdle.

In June the DOJ asked the two companies for information relating to the way that rights to Sun's Java software development language are licensed. That "narrow issue is never going to get in the way of the deal," said Dan Wall, an attorney with the firm of Latham and Watkins and counsel to Oracle, in a statement issued June 26 by the vendor. "I fully expect that the investigation will end soon and not delay the closing of the deal this summer," Wall said.

Oracle would like to close the acquisition by the end of its first fiscal quarter on Aug. 31.

Thursday an Oracle spokesperson declined to comment on the status of the acquisition, referring to the June 26 statement and a statement issued July 14 that said after reviewing Sun's fourth-quarter financial results Oracle expects the acquisition to contribute more than $1.5 billion to its operating profit in the first full fiscal year after the deal closes and $2 billion in the second year.