Skip to main content
Date
Rule
802.51
Staff
Nancy Ovuka
Response/Comments
Beneficial ownership has passed to (redacted) at the time the assets go into escrow. The subsequent transfer to B from (redacted) is exempt under 7A(c)(4), therefore, there is no impediment to entering into the management agreement. B. Michael Verne 8/1/02

Question

August 6, 2002

Via Facsimile

Nancy M. Ovuka, Esq. [sic]
Premerger Notification Office
Bureau of Competition
Federal Trade Commission
600 Pennsylvania Avenue, NW
Washington, DC 20580

Re:Premerger Notification Analysis

DearMs. Ovuka:

This letter seeks to confirm our discussion of July 24, 2002, concerning theavailability of 16 C.F.R 802.51(a) to exempt a contemplated transactionfrom the Pre-Merger Notification requirements of the Hart-Scott-RodinoAntitrust Improvements Act, 15 U.S.C. 18a. The facts of the transactionare as follows.

A United States person seeks to acquire the voting securities of a foreignissuer. The issuer currently consists of two divisions, one of whichwill be sold or spun off to a third party or parties prior to theacquisition of the foreign issuer's shares. Based on an analysis of itsconsolidated. financials, which includes both foreign and U.S. activities, theissuer had assets in the United States or sales in or into the United States inexcess of $50 million in its most recent fiscal year. However, after thedivision targeted for sale is sold, the foreign issuer will have assetsin the United States of less than $50 million and sales in or into the UnitedStates of less than $50 million both in its current and mostrecently concluded fiscal year. Thus, when the issuer's stock is acquired thetransaction will qualify for the exemption set for in 80.51 (a).

I would be grateful if you would contact me at the above phone number or emailaddress to confirm this analysis or to correct it if it is erroneous.

Very truly yours,

(Redacted)

About Informal Interpretations

Informal interpretations provide guidance from previous staff interpretations on the applicability of the HSR rules to specific fact situations. You should not rely on them as a substitute for reading the Act and the Rules themselves. These materials do not, and are not intended to, constitute legal advice.

Learn more about Informal Interpretations.