Oracle-Sun May Perish in Europe

BRUSSELS (TheStreet) -- Oracle's(ORCL) difficult acquisition of Sun(JAVA) may be about to hit a European wall, bringing the antitrust wrangle closer to its denouement.

Citing a person close to the process, the Financial Times reports that the database giant is bracing for a formal rejection by the European Commission.

Oracle shares dipped slightly in early trading Wednesday, slipping 14 cents, or 0.67%, to $20.75. Sun's stock was also down, falling 10 cents, or 1.2%, to reach $8.25 despite a modest rally in tech stocks that saw the Nasdaq rise 0.92%.

The deal has already been approved by Sun shareholders and the DoJ but has been delayed while European regulators scrutinize the merger's antitrust implications. Officials are mainly concerned about Oracle getting its hands on Sun's MySQL technology and thus limiting the choice for database software.

"Our enquiry continues," explained EC spokesman Jonathan Todd, during the Commission's daily press briefing Wednesday. Asked about the FT report, Todd reiterated that the EC probe centers on the database market. About 10 days ago, the Commission expressed its concern that Oracle hadn't provided information to allay these fears, he added.

The FT also reported that the Commission is close to issuing a statement of objections, the first step on the path to blocking the deal.

"The Commission never comments on whether a statement of objections has been sent in a merger case," said EC spokesman Todd, in response to a journalist's question Wednesday. The deadline for completing the merger remains Jan. 19, he added.