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huxley
05-18-2008, 04:45 PM
my question is : how can a congressman block a business deal from going through. what is his options to do that. what is the political actions he can do.

I'm writing a play. in my story a business man buys a shipbuilding company, one of the biggest, but he already own one of the biggest. a congressman gets wind of the sale and (does a political action and blocks the deal) doesnt kill in but just blocks it.

what are the options that this congressman could do (a usa congressman) is there some board that deals with that or something that he can bring this issue at.


thanks

Linda Adams
05-18-2008, 05:28 PM
The Washington Post (http://www.washingtonpost.com) and The Washington Times (http://www.washingtontimes.com)would be a good place to start. The political action might not be public, but a lot of behind the scenes manueuvering so that the trail doesn't lead back to him. But, just off the top of my head:

* Raises concerns that it could be creating a monopoly. This one came up a couple times recently.

* Raises concerns that it would be bad for the state and the local economy.

* Digs up dirt and passes it along anonymously to a reporter.

Really, though, look through the two newspapers. There's always a lot of this going on. In particular, hit the oped sections.

Soccer Mom
05-18-2008, 05:29 PM
Oopsie. This should really be in the Story Questions and Experts. Hang on while I fiddle with the knobs.

alleycat
05-18-2008, 05:38 PM
The congressman could call the Securities and Exchange Commission (the SEC) and have them investigate the sale. That would hold up any deal in the works. The SEC could also block the sale completely for various reasons if they so chose. This assumes that at least one of the companies is a publicly traded company.

huxley
05-18-2008, 06:00 PM
The congressman could call the Securities and Exchange Commission (the SEC) and have them investigate the sale. That would hold up any deal in the works. The SEC could also block the sale completely for various reasons if they so chose. This assumes that at least one of the companies is a publicly traded company.


yes, that'c more of what i what looking for. some sort of governing body that could put deals between companies on hold.


so it would be the (sec) that would have that power, yes?

thanks

huxley
05-18-2008, 06:06 PM
one question though, would that SEC be the ones that get involved if it treads close to monopoly?

alleycat
05-18-2008, 06:09 PM
yes, that'c more of what i what looking for. some sort of governing body that could put deals between companies on hold.


so it would be the (sec) that would have that power, yes?

thanks
The SEC would be the logical choice to use in a story involving large companies. The Justice Department would be an alternate.

huxley
05-18-2008, 06:11 PM
sorry for all the posts but look at what i found.

"
SPECIAL TO THE NEW YORK TIMES
Published: August 1, 1986
A Federal District Court Judge today issued a preliminary injunction against the Coca-Cola Company, halting its bid to buy the Dr Pepper Company for $470 million.
Acting at the request of the Federal Trade Commission, Judge Gerhard A. Gesell ordered the nation's largest soft-drink company not to proceed with its planned acquisition of the nation's No. 4 soft-drink maker pending a hearing before an F.T.C. administrative law judge.
A spokesman for the F.T.C. said a prehearing conference was scheduled for Sept. 18. Last month, the F.T.C. announced that it would oppose both the Coke-Dr Pepper deal on anticompetitive grounds, and a $380 million bid by the Pepsico Company to buy the Seven Up Company. "

do you guys think that could work for my senario?

alleycat
05-18-2008, 06:13 PM
one question though, would that SEC be the ones that get involved if it treads close to monopoly?
In that case the two agencies that would be most involved would be the Federal Trade Commission (FTC) and the Antitrust Division of the Department of Justice.

Sorry, huxley, you were posting while I was typing the above.

benbradley
05-18-2008, 06:16 PM
There are "deals" made in the tax code all the time. There's huge amounts of text in it that doesn't name names, but says something like "a company bought on such-and-such a date at such-and-such a price gets this tax break." The company buying may be in contact with the congressman to make that tax change for the deal (as it wouldn't be worth buying without the benefit of the tax break), but the congressman decides for some reason (? better be something good...) not to do it.

The congressman could call the Securities and Exchange Commission (the SEC) and have them investigate the sale. That would hold up any deal in the works. The SEC could also block the sale completely for various reasons if they so chose. This assumes that at least one of the companies is a publicly traded company.
I'd think the congressman would have to initiate this anonymously or at least "behind the scenes." He wouldn't want to be known for doing it.

Overall, this is a great question, as theoretically a congressman has no such "official power," but practically, anyone who watches politics knows otherwise.

Oopsie. This should really be in the Story Questions and Experts. Hang on while I fiddle with the knobs.
Uh huh, it's been less than a day and she's already exercising her new powers...:)

huxley
05-18-2008, 06:37 PM
There are "deals" made in the tax code all the time. There's huge amounts of text in it that doesn't name names, but says something like "a company bought on such-and-such a date at such-and-such a price gets this tax break." The company buying may be in contact with the congressman to make that tax change for the deal (as it wouldn't be worth buying without the benefit of the tax break), but the congressman decides for some reason (? better be something good...) not to do it.

I'd think the congressman would have to initiate this anonymously or at least "behind the scenes." He wouldn't want to be known for doing it.

Overall, this is a great question, as theoretically a congressman has no such "official power," but practically, anyone who watches politics knows otherwise.

Uh huh, it's been less than a day and she's already exercising her new powers...:)


more or less , i'm just gonna explain my senario. ( I just trying to find out what is the action that this congressman will do to block the sale. the correct action -I dont want to just make something up.)

Mr.A owns one of the largest ship building companies.
his bigest competitor his Mr. B.

Mr. a makes a deal with the 3rd largest ship building company to buy them out,( making Mr. A corner a big piece of the market)
the deal is progressing, but Mr.B gets wind of it and calls in a favor from a congressman that he gave very generous campaign contributions to.


the congressman doesnt do it between the scenes , he does it very publicaly. Mr.A finds out that it's him, and goes out to dig up some dirt on this congress man.

so what could this congressman do that would be believable?
thanks guys.... plus I'm gonna go do some research online.

alleycat
05-18-2008, 06:44 PM
A congressman could publicly call for the FTC and/or the Justice Department to investigate. Those two agencies would review the sale anyway.

A plausible reason for the congressman to do it publicly would be if the company being bought was in his district, or if Mr. B's company was in his district.

huxley
05-18-2008, 07:03 PM
A congressman could publicly call for the FTC and/or the Justice Department to investigate. Those two agencies would review the sale anyway.

A plausible reason for the congressman to do it publicly would be if the company being bought was in his district, or if Mr. B's company was in his district.

thanks, thats what i think i'm gonna do. i'm gonna go investigate the FTC.

last question: on what grouns could the FTC block it , or congressman for that mather. anti-competitive, or like contrary to public interest, or something more realistic.

thanks

alleycat
05-18-2008, 07:08 PM
There are antitrust/anti-monopoly laws. A big company buying another big company would certain come under a lot of scrutiny.