PeopleSoft denies Oracle influence in Conway sacking

But analysts question statement as DoJ says it won't appeal Oracle court ruling

Oracle looks closer than ever before to winning its hostile takeover bid for rival PeopleSoft.

The news that PeopleSoft chief executive and president Craig Conway has been sacked, coincided with the revelation that the US Justice Department will not appeal against last month's court decision to give the deal the go-ahead.

PeopleSoft said the decision to get rid of Conway, who was leading the fight against the Oracle bid, resulted from 'a loss of confidence'.

PeopleSoft has appointed its founder and chairman Dave Duffield as the new chief executive.

While PeopleSoft says its decision was nothing to do with the Oracle bid, industry spectators are not so sure.

'The company strongly denied it, but as the business is performing OK, we find it impossible to believe that this move is not connected with the Oracle bid,' said David Bradshaw, principal analyst at Ovum.

Ovum says the DoJ news surely explains PeopleSoft's decision. PeopleSoft has appointed Kevin Parker and Phil Wilmington as co-presidents. 'I am excited to be returning to PeopleSoft on a full time basis and look forward to working with our strong, talented senior management team,' said Dave Duffield.

'My priority is to build on the core values on which this company was founded. We will focus on technology innovation, a relentless commitment to our customers, and a renewed drive to keep PeopleSoft a great place to work for all employees,' he said.