Preliminary injunction dissolved on L.B. Foster proposed acquisition of Portec Rail
Written by jrood
February 14, 2001 L. B. Foster said that the Court of Common Pleas of Allegheny County, Pennsylvania has dissolved the preliminary injunction issued on April 21, 2010, which had enjoined the completion of L.B. Foster's tender offer for Portec Rail Products, Inc. Stan Hasselbusch, L.B. Foster's chief executive officer, commented, "We are pleased that this obstacle to L.B. Foster's acquisition of Portec Rail has been removed."
On February 16, 2010,
L.B. Foster Company and its wholly-owned subsidiary, Foster Thomas Company,
entered into an Agreement and Plan of Merger with Portec Rail Products, Inc. Pursuant
to the merger agreement, L.B. Foster, through its subsidiary, commenced a
tender offer for all of Portec’s common stock at a price of $11.71 per share. The
tender offer currently is set to expire on July 30, 2010 and is subject to all
necessary antitrust clearances under the Hart-Scott-Rodino Antitrust
Improvements Act of 1976.
L.B. Foster also said the
United States Department of Justice informally has raised antitrust concerns to
L.B. Foster’s proposed acquisition of Portec. Hasselbusch further stated,
"The DOJ has set forth a concern that the proposed acquisition has potentially
anti-competitive effects with respect to the merged company’s rail joint
business. Although the DOJ has not made a final determination, the DOJ may
seek, as a condition to the proposed acquisition, various restructuring
alternatives, possibly including the sale of certain assets associated with the
merged company’s rail joint business. L.B. Foster is evaluating this
matter."
