0612009 Informal Interpretation

us-ftc-hsr-informal-interpretations-71872dd625ae90dddcf4aea9a66b0af90612009 Informal InterpretationGuidance

Date
Rule
801.2(d)
Staff
Michael Verne
Response/Comments
In a consolidation, the size-of-person of the Newco does not come into play. If there were only two companies consolidating, A is deemed to acquire B and B is deemed to acquire A. So the relevant size-of-person test is applied to A and B. In your consolidation of three companies, the size-of-person test for each step would be: 1) A acquiring B+C 2) B acquiring A+C 3) C acquiring A+B So you could have three filings, but only one filing fee pursuant to 803.9(c). If you do have three filings, you don't have to combine for purposes of the form. You would do a filing for each of A, B and C as both acquiring and acquired persons.

Question

From: (redacted)

Sent: Thursday, December 14, 2006 4:15 PM

To: Verne, B. Michael

Cc: (redacted)

Subject: RE: 801.2(d) Question

Mike - as a follow-up question. At closing, we anticipate that A,B and C will consolidate into subs of Newco and simultaneously issue members of A, B and C Newco voting shares. For purposes of calculating the size-of-the-person threshold for Newco to determine the reportability of members' acquisition of voting shares - do we:

(1) look at the size of Newco immediately before consolidation; or

(2) look at the size of Newco after A,B and C have consolidated into Newco?


Complete printed PDF page 1

Continue your research in ChatGPT or Claude

Connect Omnilex to search the legal corpus from your AI assistant.