Updated with IBM's comments on the E.U.'s concerns

BRUSSELS (

TheStreet

) --

Sun's

(JAVA)

controversial

acquisition

by

Oracle

(ORCL) - Get Report

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

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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) - Get Report

SQL and

IBM's

(IBM) - Get Report

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.

Reuters reports that the Redwood Shores, Calif.-based firm has until Dec. 14 to address the E.U.'s concerns and said that Oracle, Sun and other "interested parties" can argue their case at this week's two-day hearing. A final decision, however, is not expected until early next year. European officials recently

extended

the deadline for their antitrust review of the $7.4 billion deal by more than a week, from Jan. 19 until Jan. 27.

Oracle had originally hoped to close the deal, which is already approved by the

Department of Justice

and Sun shareholders, sometime during the summer.

The drawn-out purchase has been particularly problematic for Sun, which recently announced plans to cut

3,000 jobs

. Sun revealed the layoffs in a filing with the

Securities and Exchange Commission

, explaining that its hand was forced by the deal's delay.

Ellison has also

complained

that the EC probe is costing Sun $100 million a month.

Oracle rival IBM dismissed the E.U.'s antitrust concerns in a

Financial Times

report on Wednesday. In an interview, Steve Mills, the tech giant's software chief, said that MySQL poses "little direct challenge" to Oracle and IBM's databases.

-- Reported by James Rogers in New York