Federal regulators have notified Oracle that they will need more time to investigate its proposed hostile acquisition of PeopleSoft, a decision likely to further complicate the contentious takeover plan.
"We were not surprised, given the size and scope of the transaction and the fact that PeopleSoft is also proposing its own transaction, which is undergoing regulatory review," Oracle spokesman, Jim Finn, said. "We remain optimistic that the (U.S.) Department of Justice will conclude that this transaction is not anti-competitive, and that we will complete the transaction in a timely manner."
PeopleSoft is in the midst of a planned buyout of J.D. Edwards & Co. The company recently sweetened the terms of that deal, in hopes of speeding its closing.
Since Oracle's June 6 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 $US6.3 billion cash tender offer to PeopleSoft's shareholders expires on July 7, but the company has said it will consider extending the offer.