3 States Oppose Amoco-Arco Deal

California, Oregon and Washington on Monday joined the Federal Trade Commission in suing to block BP Amoco from acquiring Los Angeles-based Atlantic Richfield Co.

As with the FTC, which filed suit Friday, the states claim the buyout could lead to higher prices of oil pumped from Alaska’s North Slope and shipped to the West Coast for refining. They also claim the acquisition of Arco would eliminate the firm most likely to constrain BP’s exercise of monopoly power in that market.

London-based BP Amoco and Arco are considered to be the most important competing bidders for oil and gas exploration leases on land owned by the U.S. and Alaska.

“The proposed merger would substantially increase market concentration in an already highly concentrated market,” California Atty. Gen. Bill Lockyer said in the suit.

“We believe we have a very compelling case and we will argue it vigorously in court,” Arco spokeswoman Marylou Ferry said. An attorney for BP Amoco couldn’t immediately be reached for comment.

The FTC went to federal court in San Francisco last week seeking to block the $27-billion acquisition. The states’ suit, which was filed as a separate action in federal court in San Francisco, asks for a preliminary and permanent injunction against BP Amoco.