Samsung’s AST Stock Buy Clears Antitrust Hurdle

The sale of more than 40% of troubled computer maker AST Research Inc. for $378 million to South Korea’s Samsung Electronics Co. has cleared antitrust scrutiny, the Seoul-based company said Wednesday.

The U.S. Federal Trade Commission, which reviews deals that may have anti-competitive effects in this country, said the transaction between the two personal computer makers doesn’t violate antitrust law.

“It’s nice that it went early, but we never thought this was something to worry about,” said Lee Lambert, director of mergers and acquisitions for Samsung Information Systems America in San Jose.

Under the terms of the agreement that was reached in February, the South Korean electronics giant will pay $250 million in cash for new stock in AST and will spend $128 million for existing shares to gain a 40.25% stake in AST. Samsung also will provide $72 million in loan guarantees to AST. Samsung will name six directors to a new AST board that is expected to have 13 members.

For AST, the deal provides needed cash to upgrade plants. The company suffered several losing quarters and recently closed a facility in Fountain Valley while moving operations overseas.

For Samsung, the deal gives the foreign firm access to the U.S. market, which it has found hard to penetrate.

The deal must still be approved by the Korean government and AST shareholders. No date for the AST shareholder meeting has been set, said a company spokesman. AST’s stock rose 37.5 cents a share to close Wednesday at $17.25 in Nasdaq trading.