Report: DOJ Lawyers To Halt Oracle's PeopleSoft Bid

On Tuesday night, The Wall Street Journal reported that Justice Department staff will recommend that the government nix Oracle's hostile bid. The Justice Department's antitrust division head still must make the final determination, which is expected next month.

Oracle last week raised its hostile bid by some $2 billion in cash. At the time, the company said it expected regulatory rulings by mid-March. PeopleSoft's board subsequently recommended that shareholders reject that offer, as it had done with previous offers.

PeopleSoft executives have repeatedly said that a buyout would raise regulatory issues. Their counterparts at Oracle have said that a combined company would still face stiff competition in enterprise applications from SAP.

Oracle launched its PeopleSoft acquisition attempt last June, just days after PeopleSoft said it would buy software vendor J.D. Edwards. PeopleSoft executives characterized Oracle's move as an attempt to sabotage that deal.

PeopleSoft stock closed Tuesday afternoon at $21.69 per share. The latest Oracle bid is for $26.00 per share.

For more coverage of this continuing story, see the CRN PeopleSoft news center.