I'm assuming that the three acquisitions are contingent on one another.
801.13 would require you to aggregate the three secondary acquisitions of 33.3%.
Arguably, you could stop aggregating at 66.6% when you get control, but we
have consistently said that when you have multiple acquisitions that are
contingent on one another, you need to look through to the underlying
substance of the acquisitions and report on the entire transaction.
Thursday, September 27, 2012 3:37 PM
Verne, B. Michael
Mike- Hope all is well.
Quick question: Assume that threeseparate holding companies that are not under common control, as control isdefined in the HSR Rules, each hold 33.3% of the outstanding voting securitiesof (redacted). Purchaser will acquire 100% of the outstanding votingsecurities of each holding company for $40 million. The acquisitions of thevoting securities of each holding company is not HSR reportable because the HSRthresholds are not met. Nor are the indirect acquisitions of 33.3% of (redacted)reportable as secondary acquisitions. But, the end result is that Purchaserwill own
100%of the voting securities of (redacted).
Thisis strange but the indirect acquisition of control of (redacted) doesnot appear to be reportable under the HSR Rules. Am I missing something? Do youagree?