U.S. Ends Probe of Computer Associates' Acquisition

The Justice Department ends its investingation into the company's acquistion of Sterling Software.

Author:: Michael Dunn
Publish date:: Apr 18, 2002 7:30 AM EDT

Computer Associates

said it had been informed that the U.S. Justice Department has closed its inquiry into the company's acquisition of Sterling Software without taking action.

Earlier in the week the Justice Department said it was inquiring into the computer seller's $4 billion March 2000 acquisition of the software company, an investigation similar to the one faced by CA in 1999 that led to a lawsuit being filed last September. The previous suit, which is still ongoing, concerns the acquisition of Platinum Technologies and alleges that Computer Associates was actively involved in decision-making for Platinum before the merger had passed antitrust review.

Computer Associates has also recently been under scrutiny by the

Securities and Exchange Commission

and the U.S. Attorney's office over its accounting practices.

Shares of CA were recently trading up 6.8% to $19.75 on the news in Instinet premarket trading after closing at $18.49 Wednesday.