EU To Review AHP Offer FoR Cyanamid

The proposed takeover of American Cyanamid by American Home Products is to be examined by the European Commission to see if it is in conformity with European Union rules on competition. The commission was notified of the deal on August 16, and on August 24 it said that on the basis of its preliminary examination of the proposal, it could fall within the scope of the EU Merger Regulation.

The fact that the deal is under investigation by the EU competition authorities does not of itself mean it is likely to be called off or prohibited. Sources in Brussels say that the EU is likely to clear the deal within weeks.

Towards the end of August the US Federal Trade Commission requested additional information in connection with the previously-announced tender offer for shares in American Cyanamid common stock (Marketletters passim).