Date Set for FTC Challenge to BP Amoco-Arco

A federal judge in San Francisco set the last two weeks of March to hear arguments in the Federal Trade Commission challenge to British oil giant BP Amoco’s $27-billion takeover of Atlantic Richfield Co. U.S. District Judge Susan Illston said each side would get the equivalent of four days to present its case in court during the weeks of March 20 and 27. The FTC has asked Illston to issue a preliminary injunction blocking the merger, saying it would violate federal antitrust law by strengthening BP Amoco’s existing control over Alaska crude oil supplies and potentially hiking crude prices on both the West Coast and in futures trading on the New York Mercantile Exchange. The oil companies say the deal will result in greater efficiencies in their Alaskan operations, which could save millions of dollars for consumers. Separately, Arco confirmed plans to sell oil pipelines, connections and storage tanks near Cushing, Okla., to eliminate one FTC concern over the buyout. Judge Illston also set a hearing for Feb. 22 to consider arguments on whether or not to incorporate in the case suits filed by various states over the proposed merger.