The software maker needs to gather the requested materials and deliver them to the agency, which will then make a final decision on whether to allow the deal to progress or to challenge it. The request had been expected.
"We were not surprised given the size and scope of the transaction and the fact that PeopleSoft is also proposing its own transaction, which is undergoing regulatory review. It is important not to confuse process with outcome," Jim Finn, an Oracle spokesman, said in a statement.
Oracle does not face a deadline by which to submit the information to the Justice Department, and attorneys familiar with antitrust cases note that companies typically take several months to respond. But in deals that involve a hostile takeover, the prospective buyer tends to submit the information within weeks, according to Howard Morse, a former senior official with the Federal Trade Commission's high-tech antitrust division and now a partner with the law firm Drinker Biddle & Reath in Washington, D.C.
The state of Connecticut has already filed an antitrust lawsuit against Oracle, and other state attorneys general have given thought to following Connecticut's lead.
With the antitrust questions looming, Oracle is likely to extend its July 7 deadline for PeopleSoft investors to tender their shares. Oracle, which launched its US$6.3 billion hostile bid earlier this month, is offering PeopleSoft investors US$19.50 per share, but has also acknowledged that the price could go higher.
The database software maker also faces the challenge of PeopleSoft's "poison pill" antitakeover measures.
Finn noted, however, that Oracle expects the deal to move forward in due course.
"The Department of Justice received the case less than two weeks ago and it could not evaluate the highly fragmented enterprise software marketplace in such a brief time. We remain optimistic that the Department of Justice will conclude that this transaction is not anti-competitive, and that we will complete the transaction in a timely manner," said Finn.
Investors seem to be waiting to see how the antitrust matter plays out, given PeopleSoft's shares are trading below Oracle's offer price. PeopleSoft on Monday closed down 12 cents at US$17.56 a share.
