Compliance interpretation of request for premerger clearance: Imminent insolvency
73 F.T.C. 1300 · Feb. 14, 1964 · Digest No. 177
source volume section (73 F.T.C. 1300)
Text is machine-OCR of the printed volume and may contain errors. Advisory opinions are the Commission's views on proposed conduct, not binding orders.
No. 177. Compliance interpretation of request for premerger clearance: Imminent insolvency.
The COll11nission issued an opinion February 14, 1964, in connection with a request for advice as to whether a proposed merger, if consllll1Jnated, ,youlcl be in ,-iolation of fill outstanding order prohibiting the acquiring cOlnpany from makiilg certain acquisitions. A small company manufacturing food products applied for cJeaTanee of its acquisition by a larger produeer engaged in operations in the same product line. The larger producer was subject to a Commission order prohibiting certain acquisitions for a designated period of time ,yithout prior Commission apprm-al.
Both producers competed in the same general trading area. It "\Ias prese.nted that the smaller company 'Tas in imminent danger of insohency and that it had exhausted every possibility of locating another purc.haser withant success.
On the basis of aT ail able information, but primarily beeause. of the equities affecting the smaller eompan;(s position in the industry, the Commission gaTe its apprm' al to the proposed acquisition. (File No. 6651 , released Feb. 1:3, 1968. ) (Opinion issuedlmdm' authority of Section 3. 61(c) of the Conllnission s Rules of Practice (1967).