Despite potential DoJ setback, Oracle's PeopleSoft bid marches on

Oracle Corp. isn't about to give up on its hostile bid to acquire ERP rival PeopleSoft, despite the latest news that antitrust staff at the U.S. Department of Justice (DoJ) recommended regulators file suit to block the takeover. The news prompted analyst firm Forrester to opine, "Oracle, at this stage, would be better off to withdraw the bid and refocus its efforts on improving its own applications business." A final DoJ ruling isn't expected until early March, and Oracle may appeal the ruling and continue to pursue control of PeopleSoft's board. The recommendation came days after Oracle upped its bid to $26 per share, which was promptly rejected by the PeopleSoft board. Oracle, for its part, is lobbying PeopleSoft shareholders via letter.

Erin Kinikin, a Forrester VP, says, "The only way to get resolution to this acquisition is for someone to say 'no,' or everyone to say 'yes.' "