FTC Seeks to Block Meade Acquisition

Meade Instruments Corp.’s potential purchase of Celestron International Corp., a rival maker of high-performance telescopes used for star gazing and photography, should be blocked, the Federal Trade Commission said.

The FTC authorized its staff to seek a temporary restraining order and a preliminary injunction against Meade, the largest U.S. telescope provider, in federal court to pre-empt an attempt by Meade “to purchase all, or certain assets, of” Tasco Holdings Inc.’s Celestron telescopes, the nation’s No. 2 telescope provider and the only other manufacturer of Schmidt-Cassegrain telescopes.

The commission said a merger of the companies would eliminate competition and create a monopoly in the market for the high-performance, portable Schmidt-Cassegrain telescopes.

The FTC filed the suit before a sale announcement because the transaction might be too small to be reported under federal antitrust laws.

Irvine-based Meade said it has cooperated with the FTC’s inquiry and remains interested in buying some Tasco assets even though negotiations ended several weeks ago.

Shares of Meade rose 31 cents to close at 5.66 on Nasdaq before the announcement.