Legal Library: Cases and Proceedings

The Commission authorized staff to file a motion for a preliminary injunction to block the proposed merger of the two largest hospitals in Grand Rapids, Michigan, Blodgen and Butterworth Hospital, on grounds that the merger would substantially reduce competition for acute-care inpatient hospital services in the area The complaint was filed January 23,1996 in the U.S. District Court for the Western District of Michigan (Southern Division). On September 26,1996, the court denied the Commission's request for an injunction. The Commission dismissed its administrative complaint after the U.S. Court of Appeals for the Sixth Circuit upheld the district court's decision.

Cadence agreed to settle charges that its acquisition of Cooper & Chyan Technology, Inc. would reduce competition for "routing" software used to automate the design of integrated circuits or microchips. According to the complaint, the merger would reduce Cadence's incentives to permit competing suppliers of routing tools to obtain access to its layout environments resulting in less innovation, higher prices, and reduced services. To ensure that independent software developers of commercial routing tools continue to compete with Cooper & Chyan's technology, the consent order requires Cadence to allow the developers to participate in Cadence's software interface programs.

Mediq abandoned its proposed acquisition of Universal Hospital Services after the Commission filed a complaint and motion for a preliminary injunction to block the merger of the nation's two largest firms engaged in the rental to hospitals of movable medical equipment, such as respiratory, infusion and monitoring devices. The complaint, filed in the U.S. District Court for the District of Columbia, alleged that the merger would create a monopoly for movable medical equipment rental in many major metropolitan areas across the nation.

The Commission issued a consent agreement settling charges that the acquisition of OrNda Healthcorp by Tenet Healthcare Corp. would substantially lessen competition for general acute care services in the San Luis Obispo, California area. According to the FTC, Tenet and OrNda were the second and third largest chains of general acute care hospitals in the country, and the two leading providers of acute care hospital services in San Luis Obispo County.  The consent order permits the acquisition but requires divestiture of Tenet's French Hospital Medical Center and related OrNda assets in San Luis Obispo County.

Final consent order preserves competition in the sale of commemorative class rings to graduating high school and college students. The order requires restructuring of the purchase agreement to exclude Gold Lance, Inc. from the proposed plans to acquire Class Rings, Inc. The new acquisition plan is limited to the class ring business of Town & Country Corporation and CJC Holdings, Inc.

Consent order settles charges that the acquisition of Metal Leve S.A. would result in Mahle becoming a monopolist in the research, development, manufacture and sale of articulated pistons used in heavy duty diesel engines and requires divestiture of Metal Leve's U.S. piston business within 10 days of the final consent order.

Consent order settles charges that the proposed acquisition of Solvay, S.A.'s animal health business would reduce competition in the market for the research, development, manufacture and sale of canine lyme vaccine, canine corona virus vaccine, and feline leukemia vaccine. The order requires divestiture of Solvay's U.S. and Canadian rights to the three types of vaccines to the Schering-Plough Corporation or another Commission-approved buyer.

Consent order preserves competition in ready-to-eat cereals. The order permits the acquisition of Ralcorp Holdings, Inc.'s branded ready-to-eat cereal and snack mix business but requires the transfer of licenses to manufacture and sell cereals identical to the Chex brand products without the approval of General Mills.