Word: itt
(lookup in dictionary)
(lookup stats)
Dates: all
Sort By: most recent first
(reverse)
...changed its mind. The reason for the reversal was simple: the merger is being strongly protested by the Justice Department's antitrust division - an agen cy that easily outranks the FCC in Wash ington's hierarchy. Bowing to the anti trust division's argument that the ITT-ABC merger might impede competition and open ABC public affairs pro gramming to pressure from ITT's foreign customers, the FCC, by a 4-to-O vote (with three commissioners abstaining), called for new hearings...
...merger, a company takes over another in a different field, as in last week's announcement that tobacco-producing P. Lorillard Co. is planning to consolidate with Schenley Industries (see following story). To the trustbusters, conglomerate mergers offer some sophisticated dangers. Potential stifling of competition-as in the ITT-ABC case-is one. Another is reciprocity. One circumstantial example of reciprocity currently cited by Government lawyers involves Armour & Co., which as a meat packer is a major customer for railroad shipping space. Armour, in a conglomerate merger, bought out Baldwin-Lima-Hamilton, a manufacturer of railroad equipment...
Despite the vote, the FCC was as irked about the interruption as were ITT and ABC. The Justice Department, the FCC pointed out in its stay order, had been invited to enter the nine-month proceeding at its outset but responded for the first time only seven weeks before the merger was approved. Indeed, said the commission testily, Justice had actually violated the Federal Communications Act by not replying sooner. "If the petition before us had been filed by a private party," said the FCC majority, "it would be denied...
...ugly intragovernmental feud over the creation of an electronics and broadcasting giant, the Justice Department insisted that the FCC had violated the law by not holding more complete hearings. Antitrust Chief Donald F. Turner is arguing that the merger may be harmful on at least two grounds: 1) that ITT once intended to create a fourth television network and is buying up the third instead, and 2) that ITT anticipates a tidy cash flow from ABC. ABC lawyers contend that a reverse flow will be more likely: at least $140 million will have to be poured into the network...
Granting the stay order last week, the FCC set a tight timetable. The Justice Department was given two weeks to introduce evidence. After that, and after counterarguments are entered by ABC and ITT, the commission will decide whether to reopen the case and reconsider its previous approval. Chances are strong that it will reaffirm the merger. They are equally strong that Justice will then take the whole affair to court...