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Date

Tags:

Rule
802.3
Staff
Michael Verne
Response/Comments
If it is a 55% undivided interest in the reserves, you would look at 55% of the value of the total reserves. If it is a 55% interest in an entity that holds the reserves: you would be under §802.4, so you would look at the value of 100% of the underlying reserves

Question

From: Gillis, Diana L.
Sent: Thursday, March 13, 2014 11:30 AM
To: Verne, B. Michael
Subject: 802.3

Hi Mike- quick 802.3 valuation question- if a company is buying a 55% interest in oil reserves, is the relevant value to consider just the 55% (versus the value for 100% of the reserves)?

Diana Gillis
Premerger Notification Office
Federal Trade Commission
(202) 326-2220  dgillis@ftc.gov
 

About Informal Interpretations

Informal interpretations provide guidance from PNO staff on the applicability of the HSR rules to specific fact situations. They do not necessarily reflect the position of the Commission. 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. 

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