• Hart-Scott-Rodino Act's Exemption for Acquiring Securities "Solely for the Purpose of Investment"
  • January 19, 2006 | Authors: Thomas A. Donovan; Oded Green
  • Law Firm: Kirkpatrick & Lockhart Preston Gates Ellis LLP - Pittsburgh Office
  • Earlier this year, the Antitrust Division of the United States Department of Justice, in collaboration with the Federal Trade Commission, imposed civil penalties on a hedge fund manager for failing to comply with the premerger notification and waiting requirements of the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, 15 U.S.C. ยง 18a (the "HSR Act") before the hedge fund bought stock in two operating companies. Since then, there has been increased interest in the scope of investor activity that can qualify for the "solely for the purpose of investment" exemptions from the notification and waiting requirements of the HSR Act. This alert describes available guidance on the scope of the "solely for the purpose of investment" exemptions.