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Technology Stocks : JDS Uniphase (JDSU)

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To: quidditch who wrote (7966)3/23/2000 5:03:00 AM
From: nihil  Read Replies (1) of 24042
 
The DOJ guidelines on mergers are quite clear. If an industry (thin film filters) is too concentrated (As it appears to be) then DOJ will refuse to approve the merger. If the overly concentrated industry cannot be made more competitive by voluntary divestiture, the government can reverse the merger by suing. Even if the DOJ does not object, Alcatel (or anyone else) can sue privately to reverse the merger. It is unusual for the courts to break up a firm as a result of a private suit, but not illegal.
The purpose of the anti-merger law is to stop any merger that substantially lessens competition or tends to create a monopoly (in any industry in any part of the country) according to the court in its incipiency. Thus it is not necessary to prove lessened competition or monopoly but only the probability of such effect.
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