June 26, 2004

Oracle Corp president Safra A Catz testifies that PeopleSoft initiated talks about possible merger a year before Oracle made hostile bid for company; says Craig Conway, chief executive of PeopleSoft, personally called Lawrence J Ellison, Oracle's chief executive, in June 2002 to discuss possibility of merger of companies so that they could better compete against SAP and Siebel Systems Inc; Catz photo (M)

New York Yankees outfielder Hideki Matsui and New York Mets shortstop Kazuo Matsui, who are unrelated, face off in interleague game; photos (M)

First Armored Division was given its final mission in Iraq in April: wrest control of string of southern towns from rebellious Shiite cleric Moktada al-Sadr's militia; division's operation is being studied by Army struggling to learn lessons of war that continues to evolve, even on eve of transfer of power; campaign was mix of military tactics, political maneuverings, media management and generous dollop of cash for rebuilding war-ravaged cities; formula could become model for future fighting against insurrections plaguing Iraq; Sadr remains at large, and question is whether tactical successes claimed by commanders have guaranteed lasting strategic victory; photos (M)

South Korea, ignoring Bush administration efforts to isolate North Korea, has become its largest source of aid, trade and tourism; it is also North Korea's most consistent diplomatic advocate; conciliatory stance causes uneasiness and confusion in Washington, where White House tries to keep united front with South Korea and Japan to induce North Korea to drop its nuclear weapons program; South Korea's plans do not include unification, at least not anytime soon; it wants to nudge North Korea down road toward free market and economic development; map; photo of South Korean troops dismantling loudspeakers that had been used to boom propaganda at North Korea (M)

George, 74, is last resident of Stevenson Hotel, one of last flophouses on Bowery; has been living there since 1980, and he refuses to move; Chun Kien Realty, owner of hotel, paid other tenants to move to another flophouse; it cannot redevelop $1.2 million building until George is gone; landlord has offered him $75,000 to leave, but George wants $200,000; photo (M)