PeopleSoft

(PSFT)

reportedly is preparing to reject

Oracle's

(ORCL) - Get Oracle Corporation Report

$19.50-a-share takeover offer.

PeopleSoft executives are worried that a potential transaction wouldn't survive antitrust muster and would cause a problematically long regulatory review, people familiar with the deal told

TheStreet Recommends

The Washington Post

.

Earlier this week, Oracle raised its bid for PeopleSoft to $6.3 billion, or $19.50 a share, saying discussions with the company's institutional shareholders suggested that was a price at which they were willing to sell.

PeopleSoft began its own $1.75 billion tender for

J.D. Edwards

(JDEC)

Thursday.