Announced Actions for May 10, 1996

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Applications for prior approval of transactions: The FTC has received an application for prior approval of a divestiture from the following. The application will be subject to public comment for 30 days, until June 10.

The Penn Traffic Company, of Syracuse, New York, has applied for FTC approval to divest its BiLo supermarket in Mount Carmel, Pennsylvania, to Atlas IGA, Inc., a company newly formed by brothers Barry and Lee Palank and which is based in Hellertown, Pennsylvania. The divestiture is one of three that Penn Traffic is required to file under a 1995 consent order settling FTC charges that the company’s acquisition of 45 Acme markets would violate antitrust laws by substantially reducing competition in Towanda, Pittston and Mount Carmel, Pennsylvania. The divestitures are designed to restore competition in those areas. Applications for the other two divestitures are pending. (See May 19, 1995 news release regarding the 1995 consent order; Docket No. C-3577.) Staff contact is Dan Ducore, 202-326-2526.

Consent agreements given final approval: Following a public comment period, the Commission has made final consent agreements with the following entities. The Commission action makes the orders binding on the respondents.

Litton Industries, Inc., of Woodland Hills, California, settling charges that its acquisition of PRC Inc. would violate antitrust laws, and give Litton a competitive advantage and result in increased prices for the Navy’s Aegis destroyer program. The consent order requires Litton to divest PRC’s $40 million systems engineering and technical assistance contract for the Aegis program within 90 days (see Feb. 15, 1996 news release for more details regarding the consent order; Docket No. C-3656; Commission vote on May 7, 1996 was 5-0, with Commissioner Mary L. Azcuenaga issuing a statement in which she said she concurred except to the extent that the action “makes the . . . Navy a participant with the Commission in giving antitrust approval to any divestiture proposed under . . . the order.”). Staff contact is Ann Malester, 202-326-2682.

Amoco Oil Company, of Chicago, Illinois, settling charges that its “Crystal Clear Amoco Ultimate” advertising campaign included unsubstantiated claims, among others, that Amoco premium gasoline, because it is refined more than competitors’ brands, delivers superior engine performance and environmental benefits, and that its clear color demonstrates its superiority. The order requires Amoco to have competent and reliable scientific evidence to back up claims about the environmental benefits, engine performance, power, acceleration, or engine cleaning ability of any gasoline (see Feb. 22, 1996 news release for more details regarding this case; Docket No. C-3655; Commission vote on May 7, 1996 was 4-0, with Commissioner Roscoe B. Starek, III, recused). Staff contact is Joel Winston, 202-326-3153.

Comments on the Penn Traffic application should be addressed to the FTC, Office of the Secretary, 6th Street and Pennsylvania Avenue, N.W., Washington, D.C. 20580. Copies of the documents referenced above, including Commissioner Azcuenaga’s full statement in the Litton matter, are available from the FTC’s Public Reference Branch, Room 130, at the same address; 202-326-2222; TTY for the hearing impaired 1-866-653-4261. To find out the latest news as it is announced, call the FTC NewsPhone recording at 202-326-2710. FTC news releases and other materials also are available on the Internet at the FTC’s World Wide Web site at:

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