American Telephone & Telegraph Co. said Monday it has cleared the government's major regulatory hurdle to its $6.12 billion hostile takeover bid for computer maker NCR Corp.
The clearance paves the way for AT&T to proceed with its offer to buy all of NCR's stock for $90 a share direct from the stockholders.
But the fight for the company is far from over. NCR Corp. has a "poison pill" provision in its bylaws that makes a hostile takeover prohibitively expensive. AT&T will likely have to try to unseat the board to be successful.
Under the Hart-Scott-Rodino Act law of 1978, the Federal Trade Commission and the Justice Department review proposed mergers and acquisitions for possible violations of antitrust law, designed to maintain competition and prevent monopolies.
The government had until midnight Friday to review the AT&T's buyout offer, and the Justice Department allowed the deadline to pass without raising any objections, AT&T said.