UPDATE 1-US FTC extends review of ChoicePoint-Reed deal

Tue Apr 29, 2008 11:50pm BST
 
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WASHINGTON, April 29 (Reuters) - U.S. antitrust enforcers are conducting an extended investigation into Anglo-Dutch publisher Reed Elsevier's (REL.L: Quote, Profile, Research) planned $4.1 billion acquisition of ChoicePoint Inc CPS.N, ChoicePoint said on Tuesday.

In February, Reed Elsevier announced it would buy ChoicePoint, a Georgia-based company that provides technology, software and marketing services to manage economic and physical risks. Reed Elsevier said that by combining ChoicePoint with its LexisNexis database, it would take a leading position in the fast-growing market for personal data.

ChoicePoint said in a statement on Tuesday that the U.S. Federal Trade Commission asked it and Reed Elsevier for additional information about the deal. Such "second requests" typically mean antitrust officials have decided a deal warrants an in-depth review.

The two companies were also notified of parallel reviews by the attorneys general of certain states, ChoicePoint said.

"The companies intend to cooperate fully and respond expeditiously to the FTC. It is expected that the transaction will close later in the year," ChoicePoint said.

Merger deals are investigated by U.S. antitrust authorities to determine whether they would hobble competition and lead to higher prices. When an extended investigation is necessary, the FTC usually requires the companies to turn over large amounts of documents related to the deal. (Reporting by Julie Vorman; Editing by Tim Dobbyn)

 

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