DoJ Staff Expected to Recommend Against PeopleSoft Deal
The DoJ's staff is expected to recommend against Oracle's $9.4 billion hostile bid for PeopleSoft, according to sources close to the deal.The U.S. Department of Justices staff is expected to recommend against Oracle Corp.s $9.4 billion hostile bid for PeopleSoft Inc., according to sources close to the deal. After gathering the appropriate documentation and commentary from customers and competitors, the DoJs staff typically prepares their recommendations at the chief level, or front office. The staff is expected to present their recommendation to top officials this week, according to a report by CBS Marketwatch. Once the staff makes its case, Assistant Attorney General Hewitt Pate, the highest ranking official at the DoJ, will have about a month to make the final determination to either impede Oracles pursuit of PeopleSoft through a federal injunction, or let the deal proceed on its own.
"This is a controversial transaction. The reaction of customers has been in many respects negative, and the states are in many cases opposed," said Charles Biggio, a former DoJ attorney and current partner with Aiken & Gump, in New York. "The better bet is staff is opposed to the deal. Thats the word on the street."