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By Dawn Kawamoto, 27 August 2003 09:09

NEWS The release of internal emails from Oracle executives has exposed the company's strategy and thoughts as it attempts to acquire PeopleSoft in a hostile takeover. PeopleSoft has gone public with the emails, which had previously been 'sealed', in the latest turn of events in the escalating fight between the two software companies. PeopleSoft filed a lawsuit in June, alleging that Oracle is attempting to disrupt its business with its takeover bid. A hearing on PeopleSoft's expanded lawsuit is set for 4 September. In the lawsuit, several emails from Oracle executives have been made public and PeopleSoft has cited them as an illustration of Oracle's alleged desire to disrupt PeopleSoft's business and acquire its competitor for a "cheap" price. One of the issues causing great concern among PeopleSoft customers is Oracle's plans for supporting and upgrading PeopleSoft software, should a merger occur. In its lawsuit, PeopleSoft noted that while Oracle executives had indicated PeopleSoft products would be placed in "maintenance mode", Safra Catz, a high-level Oracle vice president, said in an internal email: "We really won't be continuing their product line." Oracle, however, said the comments in the internal Oracle emails were taken out of context and that it had never wanted the documents sealed in the first place. Oracle late last week asked the court to unseal the documents, a company spokeswoman said. A spokesman for Oracle said: "The important thing to remember is that Oracle opposed PeopleSoft's motion to seal portions of the amended complaint because Oracle has nothing to hide." Finn further added: "This email [from Catz] focuses on the 'exciting opportunity' for Oracle and the positive impact of the proposed transaction to Oracle's earnings per share. It does not talk about harm to PeopleSoft. The referenced comment about not continuing PeopleSoft's product line does not, when in proper context, suggest that Oracle has misrepresented anything about what it intends to do, and is in fact followed by talking points that make it clear that Oracle intends to continue and improve product support and to make product improvements." Dawn Kawamoto writes for News.com