NGI The Weekly Gas Market Report / NGI All News Access

Alaska Wins Say in BP Amoco-ARCO Merger

Alaska Wins Say in BP Amoco-ARCO Merger

Shares of BP Amoco and Atlantic Richfield Co. (ARCO) rose last Friday following press reports that the companies agreed to sell off all of ARCO's Alaskan assets to avoid going to court with the Federal Trade Commission (FTC) over their proposed merger.

BP Amoco closed up 75 cents Friday at $44.38, and ARCO leapt $3.69 to $68 a share. Neither company would comment on the rumor or negotiations with the FTC. An FTC spokesman declined to comment, and a spokesman from Alaska Governor Tony Knowles' office said he could not confirm reports of the asset sale agreement.

"The State of Alaska has been closely involved in this matter since the proposed merger was first announced last April. We continue to as we always have to seek a negotiated settlement, rather than leave the matter up to litigation," said Knowles spokesman Bob King.

Last week Knowles sent Alaska Attorney General Bruce Botelho to San Francisco to meet with parties involved in the case. He obtained a court ruling allowing Alaska to intervene in the case in favor of the merger. The FTC had opposed the state's intervention. Alaska now has the right to call witnesses and present evidence in the case. Washington, Oregon and California remain opposed to the merger for fear that it would increase gasoline prices.

Earlier this month the FTC voted to block the deal and said the merger could lead to higher prices for Alaskan oil. The FTC is seeking a preliminary injunction to block the deal. The case goes to federal court in San Francisco March 20.

Joe Fisher, Houston

©Copyright 2000 Intelligence Press, Inc. All rights reserved. The preceding news report may not be republished or redistributed in whole or in part without prior written consent of Intelligence Press, Inc.

ISSN © 2577-9877 | ISSN © 1532-1266
Comments powered by Disqus