Decision nears on Heinz
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October 25, 2000: 4:57 p.m. ET
Heinz makes final argument in favor of Milnot baby food merger
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NEW YORK (CNNfn) - The baby food battle drew closer to a conclusion Wednesday, as H.J. Heinz Co. made what could be its last attempt to save its proposed merger with the maker of Beech-Nut.
Heinz's lawyers submitted their rebuttal to the Federal Trade Commission's request to keep the merger blocked as they appeal a ruling in favor of the deal.
The Federal Trade Commission believes Heinz's proposed merger with Milnot Holding Co., the No. 2 and No. 3 baby food companies, respectively, behind Gerber, will stifle competition.
Last week a Federal judge ruled the merger would in fact help the two companies compete more effectively with Novartis AG's Gerber, which controls 70 percent of the baby food market, and ended the FTC's temporary injunction on the $185 million deal.
The FTC requested a stay pending appeal and on Monday filed its motion with an emergency appeals panel. The Commission has until Friday at 9 a.m. to respond to Heinz rebuttal evidence, after which the panel is expected to make its decision that day or perhaps Monday.
While the emergency appeals panel's ruling on the stay would not legally decide the case either way, both sides will be looking at this decision as a make-or-break moment.
In his ruling last week, Federal District Court Judge James Robertson wrote "it is undisputed a preliminary injunction would kill this merger."
Sal Stazzone, vice president at Milnot, said the decision to continue will be up to Heinz but also added shareholders invested in the deal can only stand so much uncertainty.
If the stay is denied, the FTC could face the task of pulling apart an already merged company.
An FTC spokesman said the Commission will announce its course of action after the decision comes.
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Heinz
Milnot
Beech-Nut
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