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Date
Rule
801.10
Staff
Patrick Sharpe
File Number
9903021
Response/Comments
Per (redacted) 4/1/99 - will lease the (redacted) and equipment. No assets will be acquired in this transaction. Called (redacted) 4/1/99. PS [note- 1-three adjacent counties]-[note 2-I disagree, they may have overlapping geographic markets.]-[note 3-(56 pages of LEASE AND TRANSFER AGREEMENT]

Question

(redacted)

March 26, 1999

VIA FEDERAL EXPRESS

Mr. Patrick Sharpe
Compliance Specialist
Bureau of Competition
Federal Trade Commission
6th and Pennsylvania Avenue, NW
Room 303
Washington, D.C. 20580

Re: Lease and Transfer Agreement between (redacted) and (redacted)

Dear Patrick:

In accordance with our discussion of this afternoon, enclosed please find a copy of the LEASE AND TRANSFER [emphasis added by PS] AGREEMENT between (redacted) as lessor, and (redacted)

(redacted) owns and operates a (redacted) facility and other assets located in (redacted) is in (redacted) which is (redacted) is located. (Redacted) is (redacted) and (redacted) and just south of (redacted) is located in (redacted) and the (redacted) involved does business as (redacted) located at (redacted) in (redacted). Thus, this transaction affiliates a (redacted) to the east and north in (redacted) is located in (redacted). [note 1] Therefore, this merger has no antitrust implications [emphasis added by PS] [note 2] and in fact it is pro-competitive because of the increasing concentration of the (redacted) in the (redacted) and (redacted) market.

I am encouraged that this Lease of (redacted) Inc. is not some sort of a subterfuge to acquire this (redacted) over time because the first page of the Lease and Transfer Agreement states, in pertinent part, that:

WHEREAS, a substantial inducement to Lessor's willingness to execute this Agreement is the covenant on the part of Lessee herein to return or otherwise convey to Lessor all of the assets comprising the (redacted) upon the expiration or earlier termination of this Agreement.

I would very much appreciate your letting me know whether we should make a Premerger Notification Report Form filing for this transaction.

My very best regards.

Very truly yours, (redacted)

(redacted) Enclosure see pdf cc:(redacted) (Without enclosure)

[note 3]

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