WNR - US judge temporarily bars Western-Giant deal
Fri Apr 13, 2007 7:46pm ET
WASHINGTON, April 13 (Reuters) - A federal judge in New Mexico granted U.S. anti-trust authorities a restraining order on Friday temporarily barring oil refiner Western Refining Inc. (WNR.N: Quote, Profile , Research) from completing its proposed acquisition of rival Giant Industries Inc. (GI.N: Quote, Profile , Research)
A district judge agreed to issue the temporary restraining order after a court hearing, putting the deal on hold while the Federal Trade Commission makes its case for an injunction against the deal, a court clerk said.
The hearing came the day after the FTC filed a complaint with the court challenging the merger on the grounds that it would reduce competition for the supply of gasoline, diesel fuel and jet fuel in northern New Mexico.
Western and Giant have said their $1.13 billion deal is pro-competitive and have vowed to fight the agency in court to preserve it.
A temporary restraining order is granted by federal judges in most cases like this to give anti-trust authorities the chance to lay out their arguments against a merger.
Western Refining agreed to pay $77 per share for Giant in a pact that would create an independent refiner and marketer with capacity of about 216,000 barrels per day largely in Virginia, Texas, Arizona and New Mexico.
