After Alaska’s governor balked at a move by BP Amoco to pushconsideration of its ARCO acquisition through the Federal TradeCommission, the company has backed off and pledged to address thestate’s anti-competitive concerns. Discussions between the companyand Alaska were ongoing last week.

“Our goal from the very beginning has been to achieve anagreement that is satisfactory to this state and to allow thepublic participation period in Alaska to run prior to seeking finalreview and approval of the ARCO acquisition from the FTC,” saidAnchorage-based BP Amoco spokesman Ronnie Chappell.

Last Monday, Gov. Tony Knowles broke off state negotiations withthe company and asked the FTC to temporarily block the $26 billionmerger after learning BP Amoco had filed certificates ofsubstantial completion with the commission. The BP Amoco filingstarted the clock on a 20-day deadline within which the FTC wouldeither have to approve the deal or sue to block it. BP Amoco hassince stopped the clock on the 20-day time limit. Even if it’sapproved by the FTC, Alaska can still sue to block the deal infederal court; however, FTC approval would diminish the state’sleverage.

“The BP Amoco acquisition in its present form createscompetitive concerns that, left un-addressed, would violate bothfederal and state antitrust law,” Knowles wrote in his letter toFTC Chairman Robert Pitofsky. “I urge the Federal Trade Commissionto seek to enjoin the acquisition unless BP Amoco lifts thedeadline they have instigated. Only with the lifting of thedeadline can meaningful negotiations proceed.”

Alaska began negotiations with BP Amoco in September todetermine whether an agreement on creating a competitiveenvironment is possible. In a September speech in Anchorage,Knowles outlined what the state seeks from BP Amoco. He saidcompetition requires: