Lexington, Massachusets-based Rational said in its latest 10Q filing it officially notified the European Commission (EC) on January 17 of the acquisition, triggering the start of a review process.
The EC has until February 20 to respond under an official first deadline, after which regulators can choose to take undertake further, lengthier investigation. The EC has the ability to stop the clock indefinitely on potential acquisitions after February 20, for deeper investigation.
Rumors had circulated the money markets of opposition to the deal from a European ISV. However, one Wall St source, who wished to remain anonymous, dismissed the rumors adding this could have been an attempt by speculators to drive down Rational’s share price. Shares in Rational closed up 0.68% this week at $10.32.
In the US, meanwhile, IBM’s acquisition of Rational appears to have been given the go-ahead. Rational said simply in the 10Q the waiting period mandated under the 1976 Hart-Scott-Rodino Antitrust Improvements Act expired on January 21 had expired.
The document did not mention opposition to the deal or any official investigation, while a company spokesperson said Rational could not comment beyond the details provided in its 10Q.
Source: Computerwire
