EC could delay Peoplesoft decision

Rethink IT, May, 2004

The European Commission may find a way to delay its decision on whether to block Oracle's hostile bid for Peoplesoft, in order to let US authorities make their judgement first.

The European Commission must act by May 11 or Oracle wins automatic approval for the deal under European Union law. A US decision on the issue may not come until July or August.

But the European Union's clock can be stopped if a company fails to provide vital evidence--something that the US Department of Justice has already alleged.

The two countries do not usually attempt to synchronize their judgements but there is some pressure on the EU to let its American counterpart take the lead in a case involving two Californian companies.The US criticized the Commission three years ago for blocking General Electric's takeover of Honeywell before the DoJ made a ruling.