Innovative Food Holdings Inc (IVFH)

[stocksnseeds]

Congressional lawmakers are now urging federal regulators to scrutinize further the proposed merger b/w US Foods and Sysco.

http://www.andnowuknow.com/headlines/sysco-facing-challenges-us-foods-merger/andrew-mcdaniel/43384#.VE8oWfnF-2o

A decision is expected by October 31...this week...maybe the FTC will give Sysco quite a scare...

Sources tell the Post that Deborah Feinstein, FTC’s Head of Competition, has told the FTC’s five commissioners that she is ready to sue to block the deal unless certain conditions are met. Those conditions may simply force Sysco to divest assets in areas where there’s too much geographical overlap. A Barclays report states that a number of industry experts believe that Sysco would have to divest approximately 15 facilities, or $6 billion of its revenues.

Sysco's latest proposal is to divest up to $2 billion in annual revenues. That's a third of what experts envision. FTC is also seeking clarity on at-will deals binding distributor and customer, to ensure that Sysco won't divest non-viable stand alone entities (say, IVFH which has had a majority of past revenues derived from USF....) Would this mean that Sysco would have to reveal its plans to the FTC regarding partners like IVFH? In this context, it seems SYSCO would have to retain IVFH to ensure growth (and not the eradication) of its competitors...


This is getting interesting. There is even a facebook page wherein teamsters are opposing the deal...