The US Federal Trade Commission has granted an early termination of the antitrust waiting period for Dimension Data`s acquisition of Proxicom.
The early termination of the waiting period, under the Hart-Scott-Rodino Antitrust Imprpovements Act, coincides with the clearance granted by the German Federal Cartel Office.
The acquisition generated much interest in the market last month after Dimension Data outbid computer giant Compaq for Nasdaq-listed e-business company Proxicom. Dimension Data`s offer of $448 million, or $7.50 a share, represented a premium of 30% to Compaq`s previous offer.
Compaq declined to raise its bid, leaving Dimension Data free to begin a tender offer for the outstanding shares in Proxicom.
Putter Acquisition Corporation, an indirect wholly owned Dimension Data subsidiary, is offering to purchase all of the outstanding shares of common stock of Proxicom.
The tender offer is conditional upon, among other things, the valid tendering before the expiration date of at least a majority of the shares of Proxicom then outstanding on a fully diluted basis, together with any shares then owned by DiData and its associates.
It was also conditional upon the expiration or early termination of the Hart-Scott-Rodino waiting period and clearance by the German competition authority.
The tender offer and withdrawal rights are to expire at midnight, New York City time, on June 14, unless extended.
The Dimension Data share closed at R38 on the JSE yesterday, down R1.10 on Wednesday`s close.
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