"Failing company " theory applied in Commission proval of sale of assets to a competitor
74 F.T.C. 1673 · Oct. 8, 1968 · Digest No. 296
source volume section (74 F.T.C. 1673)
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. 296. "Failing company " theory applied in Commission proval of sale of assets to a competitor. The Commission issued an advisory opinion granting premerger clearance for a company .in imminent danger of dissolution to sell all or part of its assets to a direct competitor. The seIlng company s financial affairs were in such state that it obviously would have ceased to be a competitive factor in its market in a matter of days. This being so, the Commission approved a sale to the only purchaser willing to, or in a position to immediately salvage the assets. (File 1\0. 693 7023 , released Oct. 8, 1968.