UPDATE 2-European Commission objects to Sun-Oracle deal

Mon Nov 9, 2009 11:47pm GMT
 
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* Sun: commission says deal may hurt database competition

* Oracle to vigorously oppose Commission's statement

* US Justice Dept reiterates its approval of the deal (Adds U.S. Justice Dept comments, WASHINGTON dateline)

By Ritsuko Ando and Diane Bartz

NEW YORK/WASHINGTON, Nov 9 (Reuters) - The European Commission has objected to Oracle Corp's (ORCL.O) acquisition of computer maker Sun Microsystems Inc (JAVA.O), throwing the $7 billion deal into question.

The commission said in a preliminary assessment that combining Sun's MySQL database product and Oracle's products could hurt competition in the database market, Sun said in a filing with the U.S. Securities and Exchange Commission.

Oracle said it "plans to vigorously oppose the Commission's Statement of Objections". The Commission faces a Jan. 19 deadline on whether to approve the deal.

Earlier this year, Sun struck a deal to sell itself to Oracle after several years of failed attempts to turn itself around. The deal was seen as a way to transform Sun into a diversified technology company, selling computers alongside Oracle's software.

European Union regulators said last month that Oracle has not presented evidence to placate antitrust concerns.  Continued...

 

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