FEDS MOVE TO STOP 3D, DTM MERGER LAWSUIT WARNS OF HIGHER PRICES.Byline: Daily News VALENCIA - The U.S. Department of Justice moved last week to block the merger of 3D Systems Corp. of Valencia and Texas-based DTM DTM dermatophyte test medium. Corp., claiming the merger would result in higher prices and less innovation for other rapid prototyping Building a part one layer at a time using a method of additive fabrication such as 3D printing. Such parts are used for concept modeling to determine if the product design meets the customer's expectations. companies. Rapid prototyping involves the transformation of computer designs into three-dimensional objects, speeding the design process for everything from cell phones to medical equipment. In a civil antitrust Antitrust The antitrust laws apply to virtually all industries and to every level of business, including manufacturing, transportation, distribution, and marketing. They prohibit a variety of practices that restrain trade. lawsuit filed Wednesday in U.S. District Court in Washington, D.C., Justice Department officials claim the competition between 3D and DTM has been the driving force behind rapid prototyping technology. 3D System's proposed $45 million acquisition of DTM would result in ``higher prices, less innovation and lower-quality service,'' said John Nannes, acting assistant attorney general in charge of the Justice Department's antitrust division. ``This is the classic kind of competitive problem that the merger laws were intended to prevent,'' Nannes said. However, representatives from the two companies vowed to fight the government's attempt to thwart the merger. ``We believe the government's case is without merit, and we intend to vigorously defend the legality le·gal·i·ty n. pl. le·gal·i·ties 1. The state or quality of being legal; lawfulness. 2. Adherence to or observance of the law. 3. A requirement enjoined by law. Often used in the plural. of the transaction,'' said Brian K. Service, 3D Systems' president and chief executive officer. John S. Murchison III, DTM's president and chief executive officer, said he remains committed to the transaction and believes it will benefit the company's shareholders as well as its customers. While 3D's acquisition offer was originally scheduled to expire expire /ex·pire/ (ek-spi´er) 1. to exhale. 2. to die. ex·pire v. 1. To breathe one's last breath; die. 2. To exhale. Thursday, the companies agreed to extend the expiration date Expiration Date The day on which an options or futures contract is no longer valid and, therefore, ceases to exist. Notes: The expiration date for all listed stock options in the U.S. until June 18 so company attorneys can prepare for their defense of the civil action. |
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