Plan to Sell ATI Medical Prompts Rival to Sue

ATI Medical Inc. said a rival has filed a lawsuit to challenge the proposed purchase of ATI by a subsidiary of Mediq Inc. as anti-competitive.

Kinetic Therapeutic Services Inc. filed the suit in federal court in San Antonio, Tex., seeking to block the proposed $22-million purchase of ATI by Mediq/PRN Life Support Services Inc. ATI, which has executive offices in Glendale and Las Vegas, and the other companies all rent medical equipment to health-care facilities.

In its complaint, Kinetic claimed that the merger “would substantially lessen competition and tend to create a monopoly” in the market for rented life-support and critical-care equipment, ATI said.

ATI termed the suit “without merit” and said the company would “vigorously oppose it.”