Oracle Fights Back Against Government's PeopleSoft SuitOracle Fights Back Against Government's PeopleSoft Suit

Oracle is still standing by its current, and final, offer of $9.4 billion for PeopleSoft Inc. and is setting up its defenses for what could be a legal battle with the government. The software vendor Friday filed its answer to the Department of Justice's antitrust suit to block Oracle's takeover bid for PeopleSoft.

In its response, filed in U.S. District Court for the Northern District of California, Oracle states that its proposed acquisition of PeopleSoft is pro-competition because it will permit Oracle to better compete with business-applications market leader SAP and numerous other rivals. Oracle also states that the merger will help it more effectively compete with Microsoft, which it says is "aggressively expanding its position in enterprise applications software."

The Justice Department has alleged in the lawsuit it filed last week with seven states that the merger would eliminate competition in human-resources and financial-management software, resulting in higher prices, less innovation, and fewer choices.