ASA Urges DOJ to Approve PeopleSoft Acquisition
American Shareholders Association argues that the acquisition's outcome should be decided solely by PeopleSoft shareholders.The American Shareholders Association (ASA) is stepping forward to request that the U.S. Department of Justice (DOJ) and Assistant Attorney General R. Hewitt Pate not interfere with Oracle Corp.s proposed $9.4 billion bid to purchase PeopleSoft on the grounds that the potential acquisitions outcome should be decided solely by PeopleSoft shareholders. The non-profit ASA, which debuted in 1999 as a project for the Americans for Tax Reform organization, contends that if the DOJ blocks the transaction simply on the notion that it violates antitrust laws, the result would incur "immediate drastic change" in future antitrust laws leading to a drop in equity values for all companies. "I have (ASA) members who own PeopleSoft stock whom I have communicated with who are for being bought out, and (members) who are against it," said Daniel Clifton, executive director for the Washington-based ASA. "Whats happening here is the DOJ is setting a precedent. This should be up to the shareholders to decide."
The DOJ is expected to announce its decision on the proposed merger by the first week in March. PeopleSoft officials have said they expect notice of the DOJs finding on or before March 2.