Oracle bids to take over PeopleSoft company

PeopleSoft has been causing problems for many IU students since it was implemented last spring. But the company has been dealing with problems of its own for more than a year, as Oracle, a California-based software company, has attempted to buy PeopleSoft without its consent.\nA takeover by Oracle would mean great expense to the thousands of higher learning institutions using PeopleSoft software, said PeopleSoft spokesman Steve Swasey.\n"The fact is, our customers chose PeopleSoft over Oracle the first time," he said. "This is a hostile takeover of a company. PeopleSoft would cease to exist. It could cost billions of dollars for universities to switch over to Oracle software."\nThat does not necessarily mean the format of the OneStart system IU students have been learning to use would change if the Oracle takeover is successful.\n"If this happens, it would have no effect on OneStart," said University Informational Technology Services Associate Vice President for University Information Systems Norma Holland and Director of University Information Systems Laurie Sullivan in a joint e-mail statement.\n"OneStart is the framework by which the PeopleSoft student, human resources and many other applications are accessed. OneStart is not the student system."\nA takeover would have no effect on IU students, Holland and Sullivan said.\nThis most recent ruling is a step forward for Oracle, but legal proceedings are far from over. PeopleSoft is attempting to ward off the takeover with poison-pill strategies that would make the company less financially desirable to the unwanted suitor. \nOracle has made four buyout offers to the California-based software company. Thursday's ruling will make it increasingly difficult for them to reject further offers. \nA ruling issued by a San Francisco judge Thursday rejected the Department of Justice's attempt to block Oracle's hostile takeover of PeopleSoft. Chief Judge Vaughan Walker of the U.S. District Court decided Oracle could proceed with its bid. He explained in a 164-page ruling that the Department of Justice failed to fully convince him of the potential monopolization of the business software market. The Department of Justice tried to block Oracle's proceedings on the grounds that it violated antitrust laws that prevent unfair practices in trade and market competition. \nPeopleSoft and IU have worked together since 1996 to revamp out-of-date student information systems. The relationship between the University and software provider was taken a step further when OneStart was introduced in time for fall registration this year. The program was touted as a vast improvement to older student information systems by University officials. \nSwasey cites Oracle's buyout tactics as a reason PeopleSoft has refused the bids. He said Oracle sent out a press release indicating the company intended to buy out PeopleSoft at 5 a.m. the day the decision was first made public; PeopleSoft was notified by fax an hour later.\n"PeopleSoft is not for sale," Swasey said.\n-- Contact staff writer Annie Tasker at atasker@indiana.edu.