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October
31, 1999
Robert Pitofsky,
Chairman
Federal Trade Commission
600 Pennsylvania Avenue, N.W.
Washington, D.C. 20580
Dear Chairman
Pitofsky:
The BP/Amoco
acquisition of ARCO in its present form creates competitive
concerns that, left unaddressed, would violate both federal and
state
antitrust law. The State of Alaska has initiated negotiations
with
BP/Amoco to determine whether an agreement on creating a competitive
environment is possible. However, I now understand BP-Amoco and
ARCO
have taken steps to trigger a provision under the federal antitrust
laws
that would force the Federal Trade Commission to make a decision
within
20 days on the proposed acquisition. I also understand that once
this
provision has been triggered, the FTC, as a matter of practice,
will not
engage in substantive negotiations with the parties, absent an
agreement
suspending this statutory deadline.
I regard this
action by the companies to preclude negotiation with
federal authorities at this stage to be inconsistent with both
the
spirit and content of the negotiations between Alaska and BP/Amoco.
Therefore I have instructed the attorney general to suspend negotiations
with them.
I urge the Federal
Trade Commission to seek to enjoin the acquisition
unless the companies lift the deadline they have instigated.
I pledge
the State of Alaska's support of any such action. Only with the
lifting
of the deadline can meaningful negotiations proceed.
The State of
Alaska appreciates the FTC's diligent work on this matter. |
