By Michael Liedtke
The Associated Press

SAN FRANCISCO - After defiantly warding off rival Oracle Corp.'s $7.7 billion hostile takeover for 15 months, business software maker PeopleSoft Inc. finds itself backed into a corner.

Swayed by an antitrust decision that bolsters Oracle's bid, PeopleSoft's stock advanced closer to the all-cash offer of $21 per share. PeopleSoft's shares surged $1.84, or 10 percent, to close at $19.88 Friday on the Nasdaq Stock Market, where Oracle's shares gained 53 cents to $10.46.

Industry analysts still believe Oracle and CEO Larry Ellison might sweeten the pot to soften PeopleSoft's staunch resistance.

U.S. District Judge Vaughn Walker weakened PeopleSoft's position late Thursday with a decision that concluded a sale to its archrival wouldn't damage competition in a narrow niche of the business software applications market.

The ruling rejected an antitrust case brought by the U.S. Justice Department.