Friday, February 27, 2004
Attorney General Abbott Files Complaint To Block Oracle Corporation's Proposed Takeover BidTexas Attorney General Greg Abbott today, along with the U.S. Department of Justice and six other states, filed a civil antitrust lawsuit in U.S. District Court in San Francisco to block Oracle Corporation's hostile takeover of PeopleSoft Inc. Oracle and PeopleSoft are two of the nation's leading providers of human resource and financial management enterprise software applications. Attorney General Greg Abbott's antitrust team led an eight-month multistate investigation into the possible anticompetitive effects of this transaction.
Attorney General Abbott's statement on the action by Texas:
"We filed to stop this merger because it would eliminate a strong competitor for large enterprise customers; there is no way that eliminating choice will benefit anyone but Oracle," Abbott said. "I am also concerned the acquisition would likely result in higher prices for important products, less innovation and decreased support for software applications."
"Many Texas agencies, local governments and universities have invested millions of dollars in enterprise software to manage vital financial and human resources operations. That investment would be jeopardized if Oracle succeeds in its anti-competitive hostile takeover attempt," Abbott said. "By suing to block this deal, we will preserve competition and ensure continued innovation in an industry crucial to Texas government, as well as Texas-based businesses. We believe this acquisition would leave large enterprises stranded and locked in to a product without an active future."
View Oracle Complaint