Weighing the Competition
Oracle, which lobbed its initial tender offer at PeopleSoft last June, has argued that the deal would not be anti-competitive to the software industry because there are many smaller e-business software providers that would step up and fill the gap. PeopleSoft, on the other hand, has argued that there are three competitors in the top tier of e-business software providers: SAP AG, Oracle and itself.Microsoft, too, has been fingered as a competitormost notably by Oracle. While the software giant now provides ERP (enterprise resource planning) software for the small and mid-sized business sector, it is largely anticipated that it will enter the larger enterprise sector in the future. In determining the nature of Oracles hostile bid, Pate will weigh the staffs recommendations, customer and competitor input and both parties arguments. Read more here about Oracles targeting of SQL Server in the market. "It is common for the assistant attorney general to follow the recommendations of the staff, but [that recommendation] could be overturned," said Biggio. "Pate will make up his own mind." Once the staff recommendation is made, there will be a dialogue at the highest levels of the DoJ to determine the merits of the case. At that point, Pate will either decide to bring a lawsuit or allow the deal to go through. Next Page: Looking at the Scenarios
PeopleSofts Board recently rejected Oracles higher bid for the company. Click here to read more about the offer.