Big exceptions to this situation Hospital mergers: Hospitals are more likely to challenge an agency finding that the merger is not legal and win. Most likely reason that these mergers succeed is because the hospitals are politically connected and can get powerful politicians to testify on their behalf. Oracle-PeopleSoft Proposed Merger Hostile takeover of PeopleSoft by Oracle: It is usually difficult to pass a hostile takeover under HSR test, because the firm being taken over is less likely to cooperate. DOJ challenged the merger because they classified the relevant market as firms that sell a complete line of business software, and thus this would be making a three-firm market into a duopoloy. The judge found that the relevant market is business software, and the geographic market is the world; therefore, the market share is not too great as to be illegal under the HSR test. Where the agency announces its intention to oppose the merger unless parties comply with certain conditions. In this instance, the firms usually acquiesce. Judge likely to lean in favor of the agency, and even if conditions are met, there is no guarantee the merger will go through. Where the agency acquiesces in the merger. Other/third firms are unlikely to challenge the merger where the DOJ/FTC has decided not to challenge the merger. The biggest hurdle of third parties is standing. & i
Big exceptions to this situation Hospital mergers: Hospitals are more likely to challenge an agency finding that the merger is not legal and win. Most likely reason that these mergers succeed is because the hospitals are politically connected and can get powerful politicians to testify on their behalf. Oracle-PeopleSoft Proposed Merger Hostile takeover of PeopleSoft by Oracle: It is usually difficult to pass a hostile takeover under HSR test, because the firm being taken over is less likely to cooperate. DOJ challenged the merger because they classified the relevant market as firms that sell a complete line of business software, and thus this would be making a three-firm market into a duopoloy. The judge found that the relevant market is business software, and the geographic market is the world; therefore, the market share is not too great as to be illegal under the HSR test. Where the agency announces its intention to oppose the merger unless parties comply with certain conditions. In this instance, the firms usually acquiesce. Judge likely to lean in favor of the agency, and even if conditions are met, there is no guarantee the merger will go through. Where the agency acquiesces in the merger. Other/third firms are unlikely to challenge the merger where the DOJ/FTC has decided not to challenge the merger. The biggest hurdle of third parties is standing. & i
Antitrust%20-%20Pierce%20-%20Spring%202013.docx