Sun/Oracle Prompts E.U. Optimism
Updated with IBM's comments on the E.U.'s concerns
BRUSSELS ( TheStreet) -- Sun's (JAVA) controversial acquisition by Oracle (ORCL) is entering into a crucial few days although E.U. officials are said to be optimistic before Thursday's hearing to discuss the proposed merger.
Reuters reports that despite the European Commission's much-publicized objections to the deal, competition commissioner Neelie Kroes is hopeful of striking a compromise with database giant Oracle at the two-day hearing.
"I am still optimistic that we can reach a satisfactory outcome that will ensure there is no adverse impact on effective competition in the European market," said Kroes at a press conference on Wednesday, according to Reuters.Sun shares crept up 3 cents, or 0.35%, to $8.52 shortly after the market opened on Wednesday. Oracle's stock dipped 4 cents, or 0.17%, to $21.87, mirroring the Nasdaq, which was down 0.21%. E.C. officials recently issued a formal objection to the deal as regulators voiced their concern about Oracle taking control of Sun's MySQL technology, which has strong links to the open source community. This prompted a war of words between Oracle and the E.C., with both sides trading barbs. In a statement released last month, Oracle vowed to oppose the E.C. and said that it was confident of its ability to clinch the sale with "unconditional clearance." The software maker has also denied a report that it is willing to create a separate unit to house Sun's contentious MySQL database technology. MySQL, which competes with Oracle, Microsoft's (MSFT) SQL and IBM's (IBM) DB2, is one of Sun's core technologies. The MySQL server powers many open-source programs such as WordPress, and the E.C. is worried about behemoth Oracle controlling such a key technology.
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