U.S. Review Delays Apple-Power Merger
The merging of Power Computing Corp. and Apple Computer Inc. has been delayed by a federal antitrust review, a Power Computing official said.
U.S. attorneys may be using the review to look for evidence in the U.S. Justice Department’s case against Microsoft Corp., John Teets, Power Computing’s corporate counsel, said Wednesday.
Teets said the attorneys in San Francisco have asked for thousands of items, including some that have little to do with Apple’s acquisition of Round Rock, Texas-based Power Computing’s key assets.
“It appears that they’re fishing for something more than our transaction with Apple,” Teets said. “It appears to pertain to their ongoing investigation of Microsoft.”
A provision of federal law known as the Hart-Scott-Rodino Antitrust Improvements Act requires review by either the Justice Department or the Federal Trade Commission of corporate mergers or acquisitions valued at more than $15 million.
Justice Department spokeswoman Gina Talamona would confirm only that the U.S. government is reviewing the deal between Cupertino-based Apple and Power Computing.
The agreement calls for Apple to pay $100 million in common stock for closely held Power Computing’s database of customers, intellectual property and other major assets.
Power Computing, once a Mac clone maker, is winding down its Macintosh business by the end of the year.
The delay in executing the agreement is slowing Power Computing’s move into the IBM-compatible laptop business.
Officials of both Apple and Power Computing expected at least a cursory review of the agreement that was announced Sept. 2.
Apple spokeswoman Katie Cotton said both companies are complying with the Justice Department’s requests.
“Apple and Power Computing are cooperating fully in this routine investigation,” she said.
The Justice Department last month accused Microsoft of violating terms of a 1995 court order by requiring its customers to install Microsoft’s World Wide Web browser on their computers.
Microsoft has denied the Justice Department’s allegations.
Apple shares rose 63 cents Thursday to close at $19 on Nasdaq.
