The US Department of Justice notified Oracle yesterday that it will need more time to investigate its proposed hostile acquisition of PeopleSoft.
Both Oracle and PeopleSoft expressed little surprise at the move, and PeopleSoft believed the delay increased the likelihood that regulators would rule Oracle's bid out of order.
PeopleSoft said it had consistently maintained that Oracle's bid faced substantial regulatory delays and a significant likelihood that it would be prohibited, and that yesteray's announcement underscored this point.
PeopleSoft is in the midst of a planned buyout of JD Edwards. The company recently sweetened the terms of that deal, in the hope of speeding its closing.
Since Oracle's 6 June announcement of its unsolicited offer to buy PeopleSoft, the two companies have been engaged in a heated clash of rhetoric and legal actions. Oracle's $6.3bn cash tender offer to PeopleSoft's shareholders expires on 7July, but Oracle has said it would consider extending the offer.
Stacy Cowley and Peter Sayer write for IDG News Service