Oracle banks on users to convince EU of Sun deal

Thu Dec 10, 2009 11:12am EST

* Ericsson, Vodafone to speak on Oracle's behalf

* Microsoft, SAP to support Commission's case

* Lawyers say client support could help Oracle

By Foo Yun Chee

BRUSSELS, Dec 10 (Reuters) - U.S. software company Oracle (ORCL.O) sought help from its customers on Thursday to dispel European Union regulators' competition concerns and clear its $7 billion plan to buy Sun Microsystems JAVA.O.

Swedish telecoms network equipment maker Ericsson (ERICb.ST) and British cellphone operator Vodafone (VOD.L) were among eight customers expected to attend a two-day European Commission closed hearing on Oracle's behalf.

Oracle, the world's biggest database software maker, and European Commission officials argued their case in the morning before scores of participants that included Oracle President Safra Catz and a representative from the U.S. Department of Justice.

Customer support could be critical for the company's case, said antitrust lawyer Silvio Cappellari at Arnold & Porter.

"If they have a convincing story to tell, this would certainly increase Oracle's chances to get the deal cleared with little or even no concessions," he said. Oracle customers such as Spanish bank BBVA (BBVA.MC), the British Atomic Weapons Agency, the British National Health Service, Sabre [TSGTX.UL] and Carnegie Mellon University will be able to present their views on Friday.

U.S. software company Microsoft (MSFT.O), Germany's SAP (SAPG.DE) and Monty Widenius, the creator of Sun's MySQL database, will back the Commission's case.

"While the usefulness of hearings is sometimes questioned, especially by merging parties, there are certainly cases where hearings turned out positive for the merging parties," said Robbert Snelders at Cleary Gottlieb Steen & Hamilton.

He cited the music joint venture between Japanese consumer electronics company Sony (6758.T) and German publisher and broadcaster Bertelsmann [BTGGP.UL] that was cleared by the Commission in 2004 and where a hearing had been useful. The European Commission has objected to the deal, citing possible competition constraints on Sun's MySQL database after the takeover. The U.S. Department of Justice has approved the takeover. (Reporting by Foo Yun Chee; Editing by Rupert Winchester )

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