SUMMARY OF ANTITRUST
FOR MONDAY, MAR. 22, 1993 THROUGH FRIDAY, MAR. 26, 1993
||U.S. v. The Gillette
Company and Parker Pen Holdings. Ltd.
Civil No.: 93-0573 (D.D.C.)
A civil complaint was
filed in U.S. District Court in the District of Columbia, challenging
the acquisition by The Gillette Company, headquartered in Boston,
Massachusetts, of Parker Pen Holdings Ltd., a British corporation,
headquartered in Newhaven, England. Simultaneously, the Department
filed a Temporary Restraining Order and Preliminary Injunction.
The complaint alleged that the acquisition would violate Section
7 of the Clayton Act by substantially lessening competition in
the manufacture, promotion and sale of premium fountain pens in
the United States. Premium fountain pens are high quality refillable
fountain pens that have an established premium image among consumers.
Sales of these products at retail were approximately $46 million.
Gillette accounted for approximately 21% of the market, and Parker
for approximately 20% of the market. In 1991, Gillette's revenues
from sales of writing instruments were about $160.2 million in
the United States and $424 million worldwide. Gillette manufactures
and sells writing instruments, including a wide variety of pens
and mechanical pencils, under the Papermate and Waterman brands.
Waterman brand writing instruments, which include premium fountain
pens, are manufactured by Gillette in Nantes, France. Suggested
retail prices of Waterman fountain pens range from about $55 to
$9,000. Wholesale sales of Waterman writing instruments in the
United States in 1991 were $14.4 million. Parker's writing instruments
are marketed in the United States through Parker Pen USA Limited,
whose principal offices are located at Janesville, Wisconsin.
In 1991, Parker's revenues from sales of writing instruments were
about $54.5 million in the United States and were about $308 million
worldwide. Parker manufactures and markets a full range of refillable
writing instruments including product lines composed of a fountain
pen and its companion rollerball pen, ballpoint, and mechanical
pencil. Suggested retail prices of Parker's fountain pens range
from around eight dollars to $10,000. On March 19, 1993, the Department
had announced its intent to challenge the proposed acquisition
unless the parties abandoned the acquisition.
||U.S. v. Thomas Franklin
Criminal No.: 93-84 (M.D. Ala.)
was filed in U.S. District Court in Montgomery, Alabama, charging
Thomas Franklin White, former branch manager of the Opelika, Alabama
branch of Meadow Gold Dairies, Inc., with rigging bids, in violation
of Section 1 of the Sherman Act, for the award and performance
of contracts to supply milk to county school systems and other
educational institutions in East Central Alabama and West Central
Copies of legal filings are
available from the Legal Procedure Unit, Antitrust Division, Room 3233,
Telephone No.: 514-2481.