In this month's Nashville Medical News, Dickinson Wright attorney Keith Dennen (pictured here) writes on the M&A regulatory climate in health care, specifically former Attorney General Bob Cooper's decision to join in an appellate court opinion brief on an Idaho antitrust suit. That, Dennen says, sets the stage very nicely for Cooper's successor, Herbert Slatery. The state's hospital operators and doctors are keenly watching and listening.
So the questions moving forward become — will Attorney General Slatery feel as strongly as his predecessor did about the monopolization of medicine? Will each and every future merger and collaborative effort be met with sharp scrutiny? Can we expect new legislation to emerge through the General Assembly, and will our struggling rural hospitals and smaller practitioners find that they need to source new ways of collaboration outside of an outright sale?
Dollar General executives said late Friday that they have been asked by Federal Trade Commission officials to produce some more information related to their offer to buy rival Family Dollar Stores for more than $9 billion. Family Dollar's leaders also have received a so-called second request, which also adds 30 days to the time the FTC will take to make any antitrust ruling on the possible combination of the companies.
So from the looks of it, Dollar General is in pole position to snatch Family Dollar away from rival Dollar Tree. Shares of the Goodlettsville-based discount retail giant are holding on to almost all of their big gains from Monday. But CNBC's David Faber chipped in with some info this morning, saying "people close to the situation" are telling him Family Dollar's board is likely to turn away Dollar General's bid mainly because of the potential antitrust headaches that would come with a deal.
"There is a belief, it seems to me, [...] that it will take a lot more than 700 stores to make them feel good about signing on to a Dollar General transaction," Faber said.
Dollar General Chairman and CEO Rick Dreiling said his team is prepared to close 700 stores and on Monday said that plan would be "very manageable." He added that regulators should look at the much bigger consumables retailer space — "anybody who sells what you sell" — rather than simply the dollar-store segment.
SEE ALSO: Ronald Barusch's take at MoneyBeat on the weak antitrust protections in Dollar General's bid
The leaders of Louisiana-Pacific and Ainsworth Lumber have agreed to extend to June 2 today's deadline to obtain regulatory approval of their planned $1.1 billion combination. The companies say their extension is the result of "continued discussions" with the Canadian Competition Bureau and the Antitrust Division of the U.S. Department of Justice. Either company can add another 45 days to the deal's timeline if needed.
Shares of LP (Ticker: LPX) are down about 1 percent this afternoon to $15.25. Investors appear to be expecting not-so-good news about the Ainsworth acquisition and have pushed the stock down nearly 20 percent since the beginning of March.
Louisiana-Pacific and its acquisition target Ainsworth Lumber have been asked by federal officials for more information about their planned deal. The Department of Justice is looking into the antitrust aspects of the $1.1 billion transaction, which is expected to close early next year.
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