The US District Court for the Northern District of California rules that the second-largest software company can proceed with its proposed bid despite DoJ’s legal challenge (Oracle / Peoplesoft)

On September 9, 2004, a federal judge ruled that Oracle, the nation’s second-largest software company, could proceed with its hostile bid for PeopleSoft, handing the Department of Justice (“DOJ”) a significant defeat in a legal challenge to a corporate merger. DOJ had sought to block Oracle’s $7.7 billion offer for PeopleSoft arguing that it would be anticompetitive under Section 7 of the Clayton Act because combining the two companies would substantially reduce competition in the market for software that large corporations use to manage their finances and employee records. Judge Walker of the Federal District Court in San Francisco, however, rejected the government’s definition of the market as too narrow, noting that the software business is particularly dynamic, with a host of current

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Kenneth S. Prince, Wayne Dale Collins, The US District Court for the Northern District of California rules that the second-largest software company can proceed with its proposed bid despite DoJ’s legal challenge (Oracle / Peoplesoft), 9 September 2004, e-Competitions Bulletin US Mergers in IT, Art. N° 53078

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