The US Department of Justice has decided to extend its investigation into Oracle's proposed acquisition of Sun, according to a brief statement put out late on Friday.
The Justice Department's 30-day window for looking into the $7.4bn (£4.5bn) deal was set to expire Friday. Instead of approving the acquisition, the Justice Department informed Oracle that it is extending that deadline, according to The Wall Street Journal. However, it is likely that the move simply means final details are being ironed out before the Justice department will give the acquisition its stamp of approval.
The news did not change Oracle's optimism that the deal will be approved.
"We've had a very good dialogue with the Department of Justice and we were almost able to resolve everything before the Second Request deadline," said Dan Wall, an attorney with Latham & Watkins who counsels Oracle. "All that's left is one narrow issue about the way rights to Java are licensed that is never going to get in the way of the deal. I fully expect that the investigation will end soon and not delay the closing of the deal this summer."
The acquisition was announced on 20 April, shortly after Sun rejected a buyout offer from IBM, causing IBM to withdraw its offer.
Sun investors will vote in a special shareholder meeting scheduled for 16 July on the proposed merger with Oracle. Sun's board, which has already approved the merger, is urging stockholders to approve the deal — a majority vote is needed. It is widely expected to go through, though some Sun shareholders have filed three separate class action lawsuits to block the deal, the company revealed in a filing with the Securities and Exchange Commission in May.
