DTMC
Worth watching, at least. Fell $ 1.60 to $ 4.10 today because Dept of Justice (DoJ) has sued to kabosh TDSC's proposed acquisition of DTMC for $ 5.80/share.
But, TDSC extended the tender offer for another 10 days so that TDSC and DTMC can contest the DoJ's action. Even if DoJ is successful in blocking the acquisition, DTMC might be a good long. TDSC obviously thinks it has value and, if you believe DoJ's argument, it's vital to have DTMC operate as a separate viable entity to provide high-tech machinery in a scarce market.
See articles below:
interactive.wsj.com
Justice Department Sues to Block 3D Systems' Acquisition of DTM
By MARK WIGFIELD
Dow Jones Newswires
WASHINGTON -- The Justice Department sued to block 3D Systems Corp.'s proposed $45 million acquisition of DTM Corp., saying the deal would stifle innovation and raise prices for machinery used to transform computer designs into three-dimensional objects.
The Justice Department said the merger would combine the nation's two largest manufacturers of "rapid prototyping" systems, reducing the total numbers to two from three. The combined 3D-DTM firm would capture 80% of revenue in the U.S. market for the large, expensive machines.
"This is the classic kind of competitive problem that the merger laws were intended to prevent," said John M. Nannes, acting assistant attorney general for the Justice Department's antitrust division. The machines speed the design process for everything from mobile phones to medical equipment.
In a suit filed in U.S. District Court, the Justice Department said the two companies "offer the most sophisticated systems in industry." They compete against each other in the development, manufacture and sale of industrial rapid prototyping systems and materials.
The Justice Department said competition between the two companies has driven innovation and enabled industry "to succeed in displacing older methods of creating prototypes, such as machining, milling or grinding."
Company officials couldn't be reached immediately for comment.
3D, based in Valencia, Calif., began a $5.80-a-share tender offer April 30 as part of a $45 million agreement to buy Austin, Texas-based DTM.
3D last Friday extended its offer to Thursday after the Justice Department asked for more time to complete its inquiry into the merger.
At 4 p.m. Wednesday on the Nasdaq Stock Market, 3D shares were down 21 cents at $18.28. Nasdaq-listed DTM shares were up 10 cents at $5.70.
interactive.wsj.com
June 7, 2001
3D Systems Extends Tender For DTM Corp. To June 18
VALENCIA, Calif. -- 3D Systems Corp. (TDSC) extended the expiration date on its tender offer to acquire DTM Corp. (DTMC) for $5.80 per share to June 18 from June 7, as the companies prepare to defend against a Justice Department suit seeking to block the proposed $45 million acquisition.
On Wednesday, the Department of Justice filed suit to stop the deal it claims would stifle innovation and rise prices for 3D imaging. The combined company would capture about 80% of revenues in the U.S. market for the expensive imaging technology, the DOJ said.
In a press release Thursday, 3D Systems said the Justice Department suit is without merit, and that it will vigorously defend the legality of the transaction.
3D Systems had postponed the expiration date from May 29 to allow the Justice Department to complete its inquiry.
DTM Corp. of Austin, Texas, a maker of 3D rapid prototyping systems, also called the government case meritless, and said it remains committed to the transaction.
Shares of DTM closed Wednesday on the Nasdaq Market at $5.70, up 10 cents, or 1.79%.
3D shares closed down 21 cents, or 1.14% at $18.28 on the Nasdaq Market Wednesday. |
