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US v BAROID STRATABIT-USA and DRESSER INDUSTRIES INC Click to find out why . . .



Keywords & Phrases
CaseNo: UVBSUADII266574, CourtName: US DEPARTMENT OF JUSTICE, Plaintiff: US, State: DC Washington D.C., UniqueCaseRef: LCD>UVBSUADII266574, United States, Judgement, Proposed Modification, Diamond Drill, Dpi, Transaction, Antitrust, Paragraph, Decree, Baroid, Provision, Motion, Halliburton, Standard, Purchaser, Laws, Antitrust Laws, Drilling Fluid, Competition, Divestiture Assets, Prohibition, Baker Hughes, Consent Decree, Drilling Fluids, Schlumberger, Washington, Western Elec, Diamond, Divestiture, Consent, Bocs, Competitor, Smith, Subsidiaries, Federal Register, Competitors, M-i, Notification, Modify, Affiliates, Act, Dresser , ContentID: 120245999

Case Documents
1   STIPULATION AND ORDER
[ see first page and extracted highlights below  ] ItemID: 113126
2 pages
PDF
2   RESPONSE OF US TO PUBLIC COMMENT ON THE PROPOSAL TO MODIFY FINAL JUDGMENT
[ see first page and extracted highlights below  ] ItemID: 113124
14 pages
PDF
3   RESPONSE OF US TO PUBLIC COMENTS
[ see first page and extracted highlights below  ] ItemID: 113123
14 pages
PDF
4   PROPOSED ORDER
[ see first page and extracted highlights below  ] ItemID: 113121
1 pages
PDF
5 2000-09-27 ORDER MODIFYING FINAL JUDGMENT
[ see first page and extracted highlights below  ] ItemID: 113120
2 pages
PDF
6 2000-09-18 US REPLY TO OPPOSITION TO ORDER MODIFYING FINAL JUDGMENT
[ see first page and extracted highlights below  ] ItemID: 113129
5 pages
PDF
7 2000-05 US EXPLANATION OF MODIFICATION PROCEDURES
[ see first page and extracted highlights below  ] ItemID: 113128
2 pages
PDF
8 2000-05 PROPOSED ORDER MODIFYING FINAL JUDGMENT
[ see first page and extracted highlights below  ] ItemID: 113122
2 pages
PDF
9 2000-03-30 SEEKING MODIFICATION OF FINAL JUDGMENT
[ see first page and extracted highlights below  ] ItemID: 113125
3 pages
PDF
10 2000-03-30 MOTION FOR ENTRY OF PROPOSED MODIFIED FINAL JUDGMENT
[ see first page and extracted highlights below  ] ItemID: 113118
4 pages
PDF
12 1999-12-22 US COMPLETION OF MODIFICATION PROCEDURES
[ see first page and extracted highlights below  ] ItemID: 113127
3 pages
PDF
13 1994-04-12 CONSENT OF US TO MODIFY FINAL JUDGMENT
[ see first page and extracted highlights below  ] ItemID: 113117
6 pages
PDF
14 1993-12-23 US SUPPORT OF MOTION TO MODIFY FINAL JUDGMENT
[ see first page and extracted highlights below  ] ItemID: 113130
7 pages
PDF
Total Documents: 14 documents , 66 pages
Price: $ 84.95


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1 . STIPULATION AND ORDER

EXTRACTED KEY WORDS
DPI
JUDGEMENT
DIAMOND
PARAGRAPH
PURCHASER
BUSINESS
COURT
AMERICA
PLAINTIFF
CIVIL ACTION
RCL
ATTORNEYS
INTERNATIONAL SUPERIOR PRODUCTS
PREDECESSOR COMPANY
STATES DIAMOND DRILL
BAROID CORPORATION
ENGAGING
TRANSACTIONS
MODIFY PARAGRAPH
PROHIBITION
NOTICE PROVISION
COURT GRANTS
REQUESTED MODIFICATION
ABIDE
                                                                                 UNITED STATES
                                            FOR THE DISTRICT OF COLUMBIA


UNITED STATES OF AMERICA, ))
               Plaintiff; )
                            )
          v.  ) Civil Action No.: 93-2621 (RCL)
                             )
BAROID CORPORATION,          )
BAROID DRILLING FLUIDS, INC.,            )
DB STRATABIT (USA) INC., and                )
DRESSER INDUSTRIES, INC.;                )
                                                                       )
               Defendants.               )
                                                                       )



                                                  STIPULATION AND ORDER

           It is hereby STIPULATED by Diamond Products International ("DPI") and the United

States, by their attorneys, as follows:

           1. In 1994, International Superior Products, Inc., the predecessor company to DPI,

agreed to be bound by the Final Judgment when it purchased the United States diamond drill bit

business of Baroid Corporation.

           2. Paragraph V.F. of the Final Judgment prohibits DPI, as the purchaser of Baroid's

diamond bit business, from engaging in certain transactions.

           3. DPI has joined the United States in asking this Court to modify Paragraph V.F. of

the Final Judgment to change the prohibition to a notice provision.

           4. If this Court grants the requested modification to Paragraph V.F., DPI agrees to

abide by the Final Judgment, as modified.



Dated:        6/12/00



SNIPPETS:
  • UNITED STATES OF AMERICA,))
  • Plaintiff;)
  • Civil Action No.: 93-2621 (RCL)
  • It is hereby STIPULATED by Diamond Products International and the United
  • States, by their attorneys, as follows:
  • In 1994, International Superior Products, Inc., the predecessor company to DPI,
  • agreed to be bound by the Final Judgment when it purchased the United States diamond drill bit
  • business of Baroid Corporation.
  • Paragraph V.F. of the Final Judgment prohibits DPI, as the purchaser of Baroid's
  • diamond bit business, from engaging in certain transactions.
  • DPI has joined the United States in asking this Court to modify Paragraph V.F. of
  • the Final Judgment to change the prohibition to a notice provision.
  • If this Court grants the requested modification to Paragraph V.F.,
  • abide by the Final Judgment,

  • 2 . RESPONSE OF US TO PUBLIC COMMENT ON THE PROPOSAL TO MODIFY FINAL JUDGMENT

    EXTRACTED KEY WORDS
    UNITED STATES
    PROPOSED MODIFICATION
    DIAMOND DRILL
    DEFENDANTS
    DPI
    TRANSACTION
    ANTITRUST
    BAROID
    PARAGRAPH
    DECREE
    BUSINESS
    ANTITRUST LAWS
    MOTION
    PROVISION
    STANDARD
    HALLIBURTON
    DIVESTITURE ASSETS
    CONSENT DECREE
    DRILLING FLUIDS
    PROHIBITION
    WESTERN ELEC
    COMPETITION
    BAKER HUGHES
    BOCS
    WASHINGTON
    COMPETITORS
    PURCHASER
    FEDERAL REGISTER
    GOVERNMENT
    
                                               UNITED STATES DISTRICT COURT
                                                FOR THE DISTRICT OF COLUMBIA
    
    
    UNITED STATES OF AMERICA,
                                                                    )
                                                                    )
                   Plaintiff;
                                                                    )
                                       )
              v.
                                                                    )      Civil Action No.: 93-2621
                                                                    )
    BAROID CORPORATION,                )
    
    BAROID DRILLING FLUIDS, INC.,      )
    DB STRATABIT (USA) INC., and          )
    DRESSER INDUSTRIES, INC.;          )
                                                                     )
                   Defendants.
                                                                    )
                                                                     )
    
                       RESPONSE OF THE UNITED STATES TO PUBLIC COMMENT
                              ON THE PROPOSAL TO MODIFY FINAL JUDGMENT
    
               The United States and Diamond Products International ("DPI") have filed a motion seeking
    
    modification of a provision of the Final Judgment that restrains DPI's ability to sell the diamond
    
    business divested to it by the defendants.  With the modification, Paragraph V.F. would be changed
    
    from a prohibition on DPI's ability to sell the business to a provision requiring DPI to give the
    
    States advance notice if it proposes a transaction with certain specified companies, so that the
    
    States would have an opportunity to review it under the antitrust laws.
    
               Notice of the proposed modification and the 60-day comment period was published in the
    
    Federal Register and the Washington Post; the comment period ended on June 19, 2000.  One
    
    comment was submitted, a copy of which is attached.  The author of the comment is Halliburton
    
    
                                                                             1
    
    
    
    
    SNIPPETS:
  • BAROID DRILLING FLUIDS, INC.,)
  • RESPONSE OF THE UNITED STATES TO PUBLIC COMMENT
  • ON THE PROPOSAL TO MODIFY FINAL JUDGMENT
  • The United States and Diamond Products International have filed a motion seeking
  • modification of a provision of the Final Judgment that restrains DPI's ability to sell the
  • Paragraph V.F. would be changed
  • from a prohibition on DPI's ability to sell the business to a provision requiring DPI to give
  • States advance notice if it proposes a transaction with certain specified companies,
  • States would have an opportunity to review it under the antitrust laws.
  • Notice of the proposed modification and the 60-day comment period was published in the
  • Federal Register and the Washington Post; the comment period ended on June 19,
  • The author of the comment is Halliburton
  • the successor to the defendants and a major competitor of DPI in the
  • complaint alleging that the proposed merger of Dresser Industries, Inc. and Baroid
  • Paragraph V.F. also barred the purchaser of the divested
  • with the divestiture assets held separate and their viability maintained as required by the
  • of the divested assets to develop independently of its most significant competitors,
  • Dresser had acquired the bulk of its diamond drill bit business three years earlier from
  • The earlier decree barred Baker Hughes from divesting the assets to its major competitors,
  • Implicit in the Final Judgment is a prohibition against the reacquisition of the divestiture
  • should be reviewed under a more stringent standard than the public interest standard.
  • concerns it identifies relate to protecting its private interest from competition,
  • A consent decree, in other words, is subject to modification to the same extent as if it had
  • only after the government or a private party initiates a suit challenging the transaction as
  • resulting `settlement is "within the reaches of the public interest."'" Western Elec.,
  • So that the BOCs would have neither the ability nor the

  • 3 . RESPONSE OF US TO PUBLIC COMENTS

    EXTRACTED KEY WORDS
    UNITED STATES
    PROPOSED MODIFICATION
    DIAMOND DRILL
    DEFENDANTS
    DPI
    TRANSACTION
    ANTITRUST
    BAROID
    PARAGRAPH
    DECREE
    BUSINESS
    LAWS
    MOTION
    PROVISION
    STANDARD
    HALLIBURTON
    DIVESTITURE ASSETS
    CONSENT DECREE
    DRILLING FLUIDS
    PROHIBITION
    COMPETITION
    WESTERN ELEC
    BAKER HUGHES
    BOCS
    STRATABIT
    WASHINGTON
    COMPETITORS
    PURCHASER
    FEDERAL REGISTER
    
                                               UNITED STATES DISTRICT COURT
                                                FOR THE DISTRICT OF COLUMBIA
    
    
    UNITED STATES OF AMERICA,     )
                                                                 )
                   Plaintiff;                                    )
                                                                 )
              v.                                                 )      Civil Action No.: 93-2621 (RCL)
                                                                 )
    BAROID CORPORATION,              )
    BAROID DRILLING FLUIDS, INC.,   )
    DB STRATABIT (USA) INC., and       )
    DRESSER INDUSTRIES, INC.;        )
                                                                  )
                   Defendants.                                   )
                                                                  )
    
                       RESPONSE OF THE UNITED STATES TO PUBLIC COMMENT
                              ON THE PROPOSAL TO MODIFY FINAL JUDGMENT
    
               The United States and Diamond Products International ("DPI") have filed a motion
    
    seeking modification of a provision of the Final Judgment that restrains DPI's ability to sell the
    
    diamond drill bit business divested to it by the defendants.  With the modification, Paragraph V.F.
    
    would be changed from a prohibition on DPI's ability to sell the business to a provision requiring
    
    DPI to give the United States advance notice if it proposes a transaction with certain specified
    
    companies, so that the United States would have an opportunity to review it under the antitrust
    
    laws.
    
               Notice of the proposed modification and the 60-day comment period was published in the
    
    Federal Register and the Washington Post; the comment period ended on June 19, 2000.  One
    
    comment was submitted, a copy of which is attached.  The author of the comment is Halliburton
    
    Company ("Halliburton"), the successor to the defendants and a major competitor of DPI in the
    
    diamond drill bit business.
    
    
    
            The United States has carefully reviewed the comment and has found no reason to alter its
    
    
    SNIPPETS:
  • RESPONSE OF THE UNITED STATES TO PUBLIC COMMENT
  • ON THE PROPOSAL TO MODIFY FINAL JUDGMENT
  • seeking modification of a provision of the Final Judgment that restrains DPI's ability to
  • diamond drill bit business divested to it by the defendants.
  • With the modification, Paragraph V.F.
  • DPI to give the United States advance notice if it proposes a transaction with certain
  • so that the United States would have an opportunity to review it under the antitrust
  • Notice of the proposed modification and the 60-day comment period was published in the
  • Federal Register and the Washington Post; the comment period ended on June 19,
  • The author of the comment is Halliburton
  • the successor to the defendants and a major competitor of DPI in the
  • a motion for entry of the proposed Order modifying the Final
  • Baroid Corporation would violate Section 7 of the Clayton Act, as amended, 15
  • Dresser/Baroid merger was likely to reduce competition in two U.S. markets:
  • and sale of drilling fluids, and the manufacture and sale of diamond drill bits.
  • Dresser/Baroid and the purchaser of the divested assets would continue to compete against each
  • would still leave such transactions subject to the antitrust laws.
  • divestiture assets to other parties are not typically included in decrees.
  • significant competitors, preventing further market concentration in a market that had
  • If DPI enters into an acquisition agreement with Baker Hughes, Schlumberger or Smith,
  • The earlier decree barred Baker Hughes from divesting the assets to its major competitors
  • Final Judgment is a prohibition against the reacquisition of the divestiture assets by the
  • modification should be reviewed under a more stringent standard than the public interest
  • A consent decree, in other words, is subject to modification to the same extent as if it had
  • Western Elec., 900 F.2d at 293-94.
  • So that the BOCs would have

  • 4 . PROPOSED ORDER

    EXTRACTED KEY WORDS
    HEREBY ORDER
    SEEKING MODIFICATION
    COURT
    PARAGRAPH
    JUDGEMENT
    
                                               UNITED STATES DISTRICT COURT
                                                FOR THE DISTRICT OF COLUMBIA
    
    
    UNITED STATES OF AMERICA,                                            ))
                   Plaintiff;                                            )
                                                                         )
              v.                                                         )          Civil Action No.:
                                                                         )
    BAROID CORPORATION,                                                  )
    BAROID DRILLING FLUIDS, INC.,           )
    DB STRATABIT (USA) INC., and               )
    DRESSER INDUSTRIES, INC.;                )
                                                                          )
                   Defendants.                                           )
                                                                          )
    
    
    
                                                                        ORDER
    
    
               Upon consideration of the motion filed by the United States, I hereby ORDER that
    
    Diamond Products International is granted leave to join the United States in seeking modification
    
    from this Court of Paragraph V.F. of the Final Judgment.
    
    
    
    
    DATE:                                                                                     /S/
    
                                                                                   United States
    
    
    
    
    SNIPPETS:
  • Upon consideration of the motion filed by the United States, I hereby ORDER that
  • Diamond Products International is granted leave to join the United States in seeking
  • from this Court of Paragraph V.F. of the Final Judgment.

  • 5 . ORDER MODIFYING FINAL JUDGMENT

    EXTRACTED KEY WORDS
    DIAMOND
    NOTIFICATION
    PLAINTIFF
    PURCHASER
    WAITING PERIOD
    ACT
    PROPOSED SALE
    PARAGRAPH
    SELL
    DRILL
    AFFILIATES
    SUBSIDIARIES
    PROVISION
    TRANSACTION
    REPORTING
    HSR
    INSTRUCTIONS
    REPRESENTATIVES
    AGREEMENT
    REQUEST
    FILING
    WRITTEN REQUEST
    CONSUMMATE
    SUBMITTING
    TERMINATION
    MANNER
    RULES PROMULGATED THEREUNDER
    AMBIGUITY
    UNCERTAINTY
    
                                               UNITED STATES DISTRICT COURT
                                                FOR THE DISTRICT OF COLUMBIA
    
    
    UNITED STATES OF AMERICA,   )
                                                                           )
                   Plaintiff;   )
                                  )
              v.   ) Civil Action No.: 93-2621(RCL)
                                  )
    BAROID CORPORATION,           )
    BAROID DRILLING FLUIDS, INC.,             )
    DB STRATABIT (USA) INC., and                 )
    DRESSER INDUSTRIES, INC.;                 )
                                                                            )
                   Defendants.
                                                                           )
                                                                            )
    
    
    
                                            ORDER MODIFYING FINAL JUDGMENT
    
    
               Having determined that it is in the public interest to do so, I hereby ORDER that the 
    
    Judgment in this case be modified so that the second sentence of Paragraph V.F. reads as follows:
    
               During the life of this decree, the purchaser of Baroid's diamond bit business
    
                           (1) shall not sell that business to, or combine that business with the
                           drill bit operations of, Dresser Industries, Inc. (now part of Halliburton
                           Company) or any of its affiliates or subsidiaries;
    
                           (2) shall not sell that business to, or combine that business with the
                           operations of, Baker Hughes, Inc., Camco, Inc. (now part of Schlumberger
                           Smith International, Inc., or any of their affiliates or subsidiaries unless
                           the following notice provision: If such transaction is not otherwise subject
                           reporting and waiting period requirements of the Hart-Scott-Rodino Antitrust
                           Improvements Act of 1976, as amended, 15 U.S.C. § 18a (the "HSR Act"), the
                           purchaser of Baroid's diamond bit business shall provide such notification
                           the same format as, and per the instructions relating to the Notification
                           Form set forth in the Appendix to Part 803 of Title 16 of the Code of Federal
    
    
    
                           Regulations as amended.  Notification shall be provided at least thirty (30)
                           the proposed sale or combination, and shall include, beyond what may be
                           the applicable instructions, the names of the principal representatives of
    
    SNIPPETS:
  • Judgment in this case be modified so that the second sentence of Paragraph V.F. reads as
  • During the life of this decree, the purchaser of Baroid's diamond bit business
  • Company) or any of its affiliates or subsidiaries;
  • shall not sell that business to, or combine that business with the diamond drill bit
  • the following notice provision: If such transaction is not otherwise subject to the
  • reporting and waiting period requirements of the Hart-Scott-Rodino Antitrust
  • Improvements Act of 1976, as amended, 15 U.S.C. § 18a (the "HSR Act"), the
  • purchaser of Baroid's diamond bit business shall provide such notification to plaintiff in
  • and per the instructions relating to the Notification and Report
  • the proposed sale or combination, and shall include, beyond what may be required by
  • the names of the principal representatives of the parties to
  • the agreement who negotiated the agreement, and any management or strategic plans
  • discussing the proposed transaction.
  • representatives of plaintiff make a written request for additional information,
  • purchaser of Baroid's diamond bit business shall not consummate the proposed sale or
  • combination until twenty days after submitting all such additional information.
  • Early termination of the waiting periods in this paragraph may be requested and,
  • granted in the same manner as is applicable under the requirements and
  • provisions of the HSR Act and rules promulgated thereunder.
  • broadly construed and any ambiguity or uncertainty regarding the filing of notice under
  • this Section shall be resolved in favor of filing notice.

  • 6 . US REPLY TO OPPOSITION TO ORDER MODIFYING FINAL JUDGMENT

    EXTRACTED KEY WORDS
    HALLIBURTON
    PROPOSED MODIFICATION
    DECREE
    DEFENDANTS
    OPPOSITION
    JUDGEMENT
    COURT
    DIAMOND
    PARAGRAPH
    PROTECTION
    DIVESTITURE ASSETS
    COMPETITOR
    BAROID
    LAW
    PROVISION
    ANTITRUST
    DPI
    TRANSACTION
    PURCHASER
    BUSINESS
    DIAMOND DRILL
    BAKER HUGHES
    MODIFY
    JOINT MOTION
    STANDARD
    DRESSER
    CONTROL
    AVOID
    EFFECTIVE COMPETITOR
    
                                               UNITED STATES DISTRICT COURT
                                                FOR THE DISTRICT OF COLUMBIA
    
    
    UNITED STATES OF AMERICA,
                                                                   )
                                                                   )
                   Plaintiff;
                                                                   )
                                      )
              v.
                                                                   )      Civil Action No.: 93-2621
                                                                   )
    BAROID CORPORATION,               )
    
    BAROID DRILLING FLUIDS, INC.,     )
    DB STRATABIT (USA) INC., and         )
    DRESSER INDUSTRIES, INC.;         )
                                                                    )
                   Defendants.
                                                                   )
                                                                    )
    
    REPLY OF THE UNITED STATES TO OPPOSITION OF HALLIBURTON COMPANY
                          TO THE PROPOSAL TO MODIFY FINAL JUDGMENT
    
                On September 18, 2000, Halliburton Company ("Halliburton"), the successor to all of the
    
    defendants, filed a memorandum in opposition to the joint motion of the United States and Diamond
    
    Products International ("DPI") to modify Paragraph V.F. of the Final Judgment entered in this case
    
    April 12, 1994.  Halliburton had earlier filed the only public comment received by the United States
    
    regarding the proposed modification, and the United States' response to that comment was filed with
    
    this Court on September 6, 2000.
    
               In its opposition to the joint motion, Halliburton elaborates upon one of the arguments
    
    its public comment -- its belief that, because Halliburton is opposed to the proposed modification,
    
    Court should apply a more stringent standard than the public interest.  In doing so, however,
    
    
                                                                             1
    
    
    
    
    SNIPPETS:
  • REPLY OF THE UNITED STATES TO OPPOSITION OF HALLIBURTON COMPANY
  • TO THE PROPOSAL TO MODIFY FINAL JUDGMENT
  • defendants, filed a memorandum in opposition to the joint motion of the United States and
  • Products International to modify Paragraph V.F. of the Final Judgment entered in this case on
  • its public comment -- its belief that, because Halliburton is opposed to the proposed
  • Court should apply a more stringent standard than the public interest.
  • Halliburton mischaracterizes the United States' position, the state of the law, and the
  • Final Judgment in general and the particular provision that is the subject of the proposed
  • upon the defendants or take away any benefit that the decree conveyed upon them.
  • restriction upon DPI's alienation rights in Paragraph V.F. provided protection to the
  • of ownership and control of the divestiture assets.
  • Halliburton claims it has an interest protected by the decree because it "could sustain
  • injury in an anticompetitive combination of DPI and another competitor."1 While Halliburton
  • Halliburton, which is the largest diamond drill bit competitor in the United States, as well
  • Since the modified Paragraph V.F. would require DPI to provide notice of a transaction
  • Halliburton ignores the fact that it was its predecessor's proposed illegal merger with
  • Dresser would have been barred from reacquiring the
  • Halliburton's concern, therefore, is more likely that such a transaction would result in a
  • The Supreme Court has held that a desire to avoid competition is not a cognizable antitrust
  • With that one exception, which permitted the defendants to prevent the purchaser from going

  • 7 . US EXPLANATION OF MODIFICATION PROCEDURES

    EXTRACTED KEY WORDS
    JUDGEMENT
    MEMORANDUM
    MOTION
    EXPLANATION
    MEMORANDUM SUMMARIZING
    MODIFY
    SUPPORT
    JOINT MOTION
    REGISTER
    NEWSPAPER
    GENERAL CIRCULATION
    DISTRICT
    COLUMBIA
    MEMBERS
    UNITED STATES DEPARTMENT
    JUSTICE
    ANTITRUST DIVISION
    RESPONSES
    WITHDRAWN
    CONSENT
    COURT
    THEREAFTER
    MODIFICATION ORDER
    
                                                UNITED STATES DISTRICT COURT
                                                FOR THE DISTRICT OF COLUMBIA
    
    
    UNITED STATES OF AMERICA,                                                ))
                   Plaintiff;                                                )
                                                                             )
              v.                                                             )      Civil Action No.:
                                                                             )
    BAROID CORPORATION,                                                      )
    BAROID DRILLING FLUIDS, INC.,          )
    DB STRATABIT (USA) INC., and              )
    DRESSER INDUSTRIES, INC.;               )
                                                                         )
                   Defendants.                                          )
    
    
    
    
                     UNITED STATES' EXPLANATION OF MODIFICATION PROCEDURES
    
               The United States submits this memorandum summarizing the procedures regarding the
    
    proposed modification of the Final Judgment.
    
               1.          Today, the United States and Diamond Products International ("DPI") have
    
    Motion to Modify Final Judgment.  The United States has also filed a memorandum in support of the
    
    joint motion.
    
               2.          The United States will publish a notice of the proposed modification in the
    
    Register and in a newspaper of general circulation in the District of Columbia.  The notice will
    
    members of the public that they may submit comments during a sixty day period about the proposed
    
    modification to the United States Department of Justice, Antitrust Division.
    
    
    
               3.          During the comment period, the United States will consider, and at the close
    
    period respond to, any comments received.
    
               4.          After the expiration of the comment period, the United States will file with
    
    comments and the government's responses.  Unless the United States has withdrawn its consent to
    
    
    SNIPPETS:
  • UNITED STATES' EXPLANATION OF MODIFICATION PROCEDURES
  • The United States submits this memorandum summarizing the procedures regarding the
  • Motion to Modify Final Judgment.
  • The United States has also filed a memorandum in support of the
  • joint motion.
  • Register and in a newspaper of general circulation in the District of Columbia.
  • members of the public that they may submit comments during a sixty day period about the
  • modification to the United States Department of Justice, Antitrust Division.
  • comments and the government's responses.
  • Unless the United States has withdrawn its consent to
  • the Court may thereafter enter the modification order without a

  • 8 . PROPOSED ORDER MODIFYING FINAL JUDGMENT

    EXTRACTED KEY WORDS
    DIAMOND
    NOTIFICATION
    PURCHASER
    WAITING PERIOD
    ACT
    PROPOSED SALE
    PARAGRAPH
    SELL
    DIAMOND DRILL
    AFFILIATES
    SUBSIDIARIES
    PROVISION
    TRANSACTION
    REPORTING
    HSR
    PLAINTIFF
    INSTRUCTIONS
    REPRESENTATIVES
    AGREEMENT
    REQUEST
    FILING
    WRITTEN REQUEST
    CONSUMMATE
    SUBMITTING
    TERMINATION
    MANNER
    THEREUNDER
    AMBIGUITY
    UNCERTAINTY
    
                                                 UNITED STATES DISTRICT COURT
                                                 FOR THE DISTRICT OF COLUMBIA
    
    
    UNITED STATES OF AMERICA,                                              ))
                   Plaintiff;                                              )
                                                                           )
              v.                                                           )           Civil Action
                                                                           )
    BAROID CORPORATION,                      )
    BAROID DRILLING FLUIDS, INC.,           )
    DB STRATABIT (USA) INC., and               )
    DRESSER INDUSTRIES, INC.;                )
                                                                            )
                   Defendants.                                             )
                                                                            )
    
    
    
                                             ORDER MODIFYING FINAL JUDGMENT
    
    
                Having determined that it is in the public interest to do so, I hereby ORDER that the
    
    Final Judgment in this case be modified so that the second sentence of Paragraph V.F. reads as
    
    follows:
    
                During the life of this decree, the purchaser of Baroid's diamond bit business
    
                            (1) shall not sell that business to, or combine that business with the
                            diamond drill bit operations of, Dresser Industries, Inc. (now part of
                            Halliburton Company) or any of its affiliates or subsidiaries;
    
                            (2) shall not sell that business to, or combine that business with the
                            bit operations of, Baker Hughes, Inc., Camco, Inc. (now part of Schlumberger
                            Ltd.), Smith International, Inc., or any of their affiliates or
                            complies with the following notice provision: If such transaction is not
                            subject to the reporting and waiting period requirements of the
                            Antitrust Improvements Act of 1976, as amended, 15 U.S.C. § 18a (the "HSR
                            Act"), the purchaser of Baroid's diamond bit business shall provide such
                            notification to plaintiff in the same format as, and per the instructions
                            the Notification and Report Form set forth in the Appendix to Part 803 of
    
    
    
                            of the Code of Federal Regulations as amended.  Notification shall be
                            least thirty (30) days prior to the proposed sale or combination, and shall
                            beyond what may be required by the applicable instructions, the names of the
    
    SNIPPETS:
  • Final Judgment in this case be modified so that the second sentence of Paragraph V.F. reads as
  • During the life of this decree, the purchaser of Baroid's diamond bit business
  • shall not sell that business to, or combine that business with the diamond drill
  • Ltd.), Smith International, Inc., or any of their affiliates or subsidiaries unless it
  • complies with the following notice provision: If such transaction is not otherwise
  • subject to the reporting and waiting period requirements of the Hart-Scott-Rodino
  • Antitrust Improvements Act of 1976, as amended, 15 U.S.C. § 18a (the "HSR
  • notification to plaintiff in the same format as, and per the instructions relating to
  • least thirty days prior to the proposed sale or combination, and shall include,
  • principal representatives of the parties to the agreement who negotiated the
  • plaintiff make a written request for additional information,
  • Baroid's diamond bit business shall not consummate the proposed sale or
  • combination until twenty days after submitting all such additional
  • Early termination of the waiting periods in this paragraph may be
  • requested and, where appropriate, granted in the same manner as is applicable
  • thereunder.
  • This Section shall be broadly construed and any ambiguity or
  • uncertainty regarding the filing of notice under this Section shall be resolved in
  • favor of filing notice.

  • 9 . SEEKING MODIFICATION OF FINAL JUDGMENT

    EXTRACTED KEY WORDS
    UNITED STATES
    DPI
    DIAMOND DRILL
    PARAGRAPH
    JOINT MOTION
    COURT
    BUSINESS
    PARTY
    PERMIT DIAMOND PRODUCTS
    MODIFY
    PURCHASER
    ORDER GRANTING
    ENFORCING
    BAROID
    SEEKING
    PENDING
    REQUESTS
    DIVEST
    PROVISION
    PURSUANT
    CIV
    OBEDIENCE
    PERSONAL SERVICE
    AFFIDAVIT
    ABIDE
    COURT GRANTS
    JURISDICTION
    PARAGRAPH XIV
    DELAY DISPOSITION
    
                                               UNITED STATES DISTRICT COURT
                                                FOR THE DISTRICT OF COLUMBIA
    
    
    UNITED STATES OF AMERICA,     )
                                                                 )
                   Plaintiff;                                    )
                                                                 )
              v.                                                 )            Civil Action No.: 93-2621
                                                                 )
    BAROID CORPORATION,              )
    BAROID DRILLING FLUIDS, INC.,   )
    DB STRATABIT (USA) INC., and       )
    DRESSER INDUSTRIES, INC.;        )
                                                                  )
                   Defendants.                                   )
                                                                  )
    
    
    
             MOTION FOR LEAVE TO PERMIT DIAMOND PRODUCTS INTERNATIONAL
             TO JOIN THE UNITED STATES IN SEEKING MODIFICATION OF THE FINAL
                                                  JUDGMENT FROM THIS COURT
    
    
               The United States hereby asks this Court for leave to permit Diamond Products
    
    International ("DPI") to join the United States in moving for modification of the Final Judgment.
    
    On March 30, 2000, DPI and the United States filed a Joint Motion to Modify the Final
    
    Judgment.  The Joint Motion to Modify the Final Judgment is now pending, and the notice and
    
    public comment period will expire on June 19, 2000.   The Joint Motion requests modification of
                                                                                     1
    
    
    Paragraph V.F. of the Final Judgment, which prohibits DPI, as the purchaser of the divested
    
    diamond drill bit business, from entering certain transactions.  The proposed modification would
    
    change Paragraph V.F. from a prohibition to a notice provision.
    
    
                      As of June 12, the United States has received one comment.
               1
    
    
    
    
    SNIPPETS:
  • MOTION FOR LEAVE TO PERMIT DIAMOND PRODUCTS INTERNATIONAL TO JOIN THE UNITED STATES IN
  • The United States hereby asks this Court for leave to permit Diamond Products
  • International to join the United States in moving for modification of the Final Judgment.
  • On March 30, 2000, DPI and the United States filed a Joint Motion to Modify the Final
  • The Joint Motion requests modification of
  • Paragraph V.F. of the Final Judgment, which prohibits DPI, as the purchaser of the divested
  • change Paragraph V.F. from a prohibition to a notice provision.
  • Judgment when it purchased Baroid Corporation's diamond drill bit business.
  • R. Civ.
  • actual notice of the order by personal service or otherwise").
  • In the attached affidavit, DPI agrees
  • that it will abide by the terms of the modified Final Judgment in the event that this Court
  • This Court retains jurisdiction under Paragraph XIV to modify the Final Judgment upon
  • Although DPI is not a party, the Final Judgment may be enforced
  • same process for enforcing obedience to the order as if a party.") Granting leave for DPI to
  • the United States will not delay disposition of the modification request pending before this
  • The United States respectfully asks this Court to enter the attached Order granting DPI
  • The defendants were required to divest Baroid's diamond drill bit business pursuant to

  • 10 . MOTION FOR ENTRY OF PROPOSED MODIFIED FINAL JUDGMENT

    EXTRACTED KEY WORDS
    PROPOSED MODIFICATION
    ORDER MODIFYING
    JUDGEMENT
    MOTION
    PARAGRAPH
    BUSINESS
    BAKER HUGHES
    PUBLICATION
    WASHINGTON
    FILING
    COUNSEL
    BAROID
    COURT
    SECOND SENTENCE
    DPI
    DIAMOND
    CAMCO
    SMITH
    AFFILIATES
    SUBSIDIARIES
    PROVISION
    NEWSPAPER
    GENERAL CIRCULATION
    DISTRICT
    COLUMBIA
    FEDERAL REGISTER
    HALLIBURTON
    DEFENDANTS
    HEREBY CERTIFY
    
                                               UNITED STATES DISTRICT COURT
                                                FOR THE DISTRICT OF COLUMBIA
    
    
    UNITED STATES OF AMERICA,
                                                                   )
                                                                   )
                   Plaintiff;
                                                                   )
                                      )
              v.
                                                                   )      Civil Action No.: 93-2621
                                                                   )
    BAROID CORPORATION,               )
    
    BAROID DRILLING FLUIDS, INC.,     )
    DB STRATABIT (USA) INC., and         )
    DRESSER INDUSTRIES, INC.;         )
                                                                    )
                   Defendants.
                                                                   )
                                                                    )
    
    
                          MOTION TO ENTER ORDER MODIFYING FINAL JUDGMENT
    
    The United States moves this Court to enter the order modifying Paragraph V.F. of the Final Judgment
    
    entered in this case, and in support of this motion, states as follows:
    
    1.         On March 30, 2000, the United States and Diamond Products International ("DPI") jointly
    
    moved to modify the second sentence of Paragraph V.F. of the Final Judgment entered in this case on
    
    April 12, 1994.  The second sentence of Paragraph V.F. presently states that DPI, as the purchaser
    
    Baroid's diamond bit business, "shall not sell that business to, or combine that business with the
    
    diamond drill bit operations of, Dresser Industries, Inc., Baker Hughes, Inc., Camco, Inc., Smith
    
    International, Inc., or any of their affiliates or subsidiaries during the life of this decree." 
    
    modification would change the provision with respect to Baker Hughes, Camco (now owned by
    
    Schlumberger), or Smith or any of their affiliates or subsidiaries from a prohibition to a notice
    
    
    
    2.     The United States tentatively consented to the proposed modification, subject to a 60-day
    
    SNIPPETS:
  • MOTION TO ENTER ORDER MODIFYING FINAL JUDGMENT
  • The United States moves this Court to enter the order modifying Paragraph V.F. of the Final
  • moved to modify the second sentence of Paragraph V.F. of the Final Judgment entered in this
  • Baroid's diamond bit business, "shall not sell that business to, or combine that business
  • modification would change the provision with respect to Baker Hughes, Camco (now owned by
  • or Smith or any of their affiliates or subsidiaries from a prohibition to a notice provision.
  • The United States tentatively consented to the proposed modification,
  • comment period following publication of a notice of the proposed modification in a newspaper
  • general circulation in the District of Columbia and in the Federal Register.
  • Notice of the proposed modification was published in the Federal Register on April 19,
  • Volume 65, No. 16, at page 3977, and in The Washington Post, a newspaper of general
  • Halliburton and DPI have advised the United States that they may wish to make a filing in
  • I hereby certify that on this 6 day of September, 2000, I have caused a copy of the foregoing
  • Motion to Enter Order Modifying Final Judgment to be served on counsel for defendants and
  • Company (Baroid Corporation,
  • Washington, D.C. 20004-1008

  • 12 . US COMPLETION OF MODIFICATION PROCEDURES

    EXTRACTED KEY WORDS
    JUDGEMENT
    CONSENT
    PROPOSED MODIFICATION
    MODIFICATION PROCEDURES
    SCHLUMBERGER
    WASHINGTON
    COUNSEL
    CONTINUED CONSENT
    MODIFY
    BAKER
    BOTTS
    ORDER MODIFYING
    HEREBY CERTIFY
    FIRST CLASS MAIL
    BRADFORD REYNOLDS
    MARY JEAN
    COLLIER
    SHANNON
    RILL
    SCOTT
    PLLC
    RUFUS
    OLIVER
    BRUCE MCDONALD BAKER
    SHELL PLAZA
    HOUSTON
    SPEARING BAKER
    WARNER
    PENNSYLVANIA AVENUE
    
                                               UNITED STATES DISTRICT COURT
                                                FOR THE DISTRICT OF COLUMBIA
    
    
    UNITED STATES OF AMERICA,     )
                                                                 )
                   Plaintiff;                                    )
                                                                 )
              v.                                                 )            Civil Action No.:
                                                                 )
    BAROID CORPORATION,              )
    BAROID DRILLING FLUIDS, INC.,   )
    DB STRATABIT (USA) INC., and       )
    DRESSER INDUSTRIES, INC.;        )
                                                                  )
                   Defendants.                                   )
                                                                  )
    
     NOTICE OF COMPLETION OF MODIFICATION PROCEDURES AND OF THE UNITED
    STATES' CONTINUED CONSENT TO MODIFICATION OF THE FINAL JUDGMENT
    
               On December 22, 1999, Smith International, Inc. ("Smith") and Schlumberger Ltd.
    
    ("Schlumberger") moved to modify the Final Judgment entered in this case on April 12, 1994, and
    
    modified on September 19, 1996, by removing "Schlumberger Ltd." from the second sentence of
    
    Paragraph IV.F. of the Final Judgment, as amended.  On that same date, the United States filed its
    
    consent to the proposed modification, reserving the right to withdraw its consent based upon public
    
    comments made or other information that came to its attention.
    
               Notice of the proposed modification was published in the Federal Register on January 25,
    
    2000 at Volume 65, No. 16, at page 3977, and in The Washington Post, a newspaper of general
    
    circulation in the District of Columbia, on January 11-January 17, 2000.  The public had thirty
    
    submit comments, beginning on January 25, 2000 and ending on February 24, 2000.  The United
    
    
    
    States has received no comments about the proposed modification.
    
               The United States continues to believe the proposed modification is in the public
    
    with the completion of the procedures for public notice and comment, now asks this Court to make its
    
    
    SNIPPETS:
  • UNITED STATES OF AMERICA,)
  • NOTICE OF COMPLETION OF MODIFICATION PROCEDURES AND OF THE UNITED STATES' CONTINUED CONSENT
  • On December 22, 1999, Smith International, Inc. and Schlumberger Ltd.
  • moved to modify the Final Judgment entered in this case on April 12, 1994, and
  • Notice of the proposed modification was published in the Federal Register on January 25,
  • public interest determination and enter the Order modifying the Final Judgment.
  • I hereby certify that on February 28, 2000, I caused the notice of completion of modification
  • Bradford Reynolds
  • Mary Jean Fell
  • Collier, Shannon, Rill & Scott, PLLC
  • 3050 K Street, N.W. Washington, D.C. 20007
  • Counsel for Smith International, Inc.
  • Rufus W. Oliver, III J. Bruce McDonald Baker & Botts, L.L.P. One Shell Plaza
  • Houston, TX 77002
  • Mary C. Spearing Baker & Botts, L.L.P. The Warner
  • 1299 Pennsylvania Avenue, N.W. Washington, D.C. 20004

  • 13 . CONSENT OF US TO MODIFY FINAL JUDGMENT

    EXTRACTED KEY WORDS
    JUDGEMENT
    SCHLUMBERGER
    UNITED STATES
    BUSINESS
    SMITH
    M-I
    COMPETITOR
    PARAGRAPH
    BAROID
    PROPOSED MODIFICATION
    SECOND SENTENCE
    DIVESTITURE
    CONSENT
    COURT
    DRESSER INDUSTRIES
    DRILLING FLUID OPERATIONS
    MODIFY
    SUBSIDIARIES
    PURCHASER
    PROHIBITED SMITH
    SELLING M-I
    ANCHOR
    EXPECTATIONS
    NAMED COMPANIES
    SELL
    BAKER HUGHES
    AFFILIATES
    LIFE
    DECREE
    
                                                 UNITED STATES DISTRICT COURT
                                                  FOR THE DISTRICT OF COLUMBIA
    
    
    UNITED STATES OF AMERICA,     )
                                                                   )
                   Plaintiff;                                      )
                                                                   )
              v.                                                   )             Civil Action No.:
                                                                   )
    BAROID CORPORATION,                                            )             Judge Stanley Sporkin
    BAROID DRILLING FLUIDS, INC.,   )
    DB STRATABIT (USA) INC., and       )
    DRESSER INDUSTRIES, INC.;        )
                                                                    )
                   Defendants.                                     )
                                                                    )
    
    
    
                    CONSENT OF THE UNITED STATES TO MODIFY FINAL JUDGMENT
    
                Smith International, Inc. ("Smith") and Schlumberger Ltd. ("Schlumberger") have filed a
    
    motion with this Court to modify the Final Judgment entered in this case on April 12, 1994, and
    
    modified on September 19, 1996.  The proposed modification would remove "Schlumberger
    
    Ltd." from the second sentence of Paragraph IV.F. of the Final Judgment, as amended.  Smith
    
    and Schlumberger have agreed to a public notice and comment period, at their expense, which
    
    will invite the public to comment to the United States regarding the proposed modification.
    
                The United States hereby consents to the proposed modification, but reserves the right
    
    withdraw its consent to modification, based upon public comments made or other information
    
    that comes to its attention.  The notice will specify that the public has thirty days to submit
    
    comments.  The United States will then file the comments, along with its response, and notify the
    
    Court and the movants whether the United States continues to believe that the modification is in
    
    
    
    the public interest.  At that time, the Court can determine whether modification is in the public
    
    interest.
    
    SNIPPETS:
  • CONSENT OF THE UNITED STATES TO MODIFY FINAL JUDGMENT
  • Smith International, Inc. and Schlumberger Ltd. have filed a
  • The proposed modification would remove "Schlumberger
  • Ltd." from the second sentence of Paragraph IV.F.
  • will invite the public to comment to the United States regarding the proposed modification.
  • Court and the movants whether the United States continues to believe that the modification is
  • business about the proposed merger of Dresser Industries, Inc. and Baroid
  • competed in the drilling fluid business through its 64 percent interest in M-I Drilling
  • could enter with three named companies,
  • The purchaser of the divested drilling fluid business shall not sell the drilling fluid
  • prohibited Smith from selling M-I to or combining M-I with the drilling fluid
  • selling M-I to or combining it with the drilling fluid operations of Anchor Drilling Fluids.
  • The Judgment was modified in 1996 to permit Smith to acquire Anchor subject to a divestiture
  • competitor in the United States very quickly.
  • more than two percent of U.S. drilling fluid sales, contrary to expectations.

  • 14 . US SUPPORT OF MOTION TO MODIFY FINAL JUDGMENT

    EXTRACTED KEY WORDS
    BUSINESS
    JUDGEMENT
    DIAMOND DRILL
    TRANSACTION
    COMPETITION
    DIVESTITURE
    ANTITRUST
    DRESSER
    CIR
    SUPP
    COURT
    CONSENT
    DECREE
    DPI
    TRADE CAS
    PARAGRAPH
    PURCHASER
    ACT
    CCH
    STANDARDS
    SALE
    BAKER HUGHES
    CAMCO
    AFFILIATES
    SUBSIDIARIES
    PROHIBITION
    PROVISION
    NOTIFICATION
    GOVERNMENT
    
                                                UNITED STATES DISTRICT COURT
                                                FOR THE DISTRICT OF COLUMBIA
    
    
    UNITED STATES OF AMERICA,                                            ))
                   Plaintiff;                                            )
                                                                         )
              v.                                                         )         Civil Action No.:
                                                                         )
    BAROID CORPORATION,                                                  )
    BAROID DRILLING FLUIDS, INC.,                                        )
    DB STRATABIT (USA) INC., and             )
    DRESSER INDUSTRIES, INC.;             )
                                                                        )
                   Defendants.                                         )
                                                                          )
    
    
    
    
                               MEMORANDUM OF THE UNITED STATES IN SUPPORT
                                        OF MOTION TO MODIFY FINAL JUDGMENT
    
                The United States and Diamond Products International ("DPI") have moved this Court to
    
    modify the Final Judgment entered in this action.  This memorandum summarizes the Complaint
    
    that initiated this action and the resulting Judgment, describes the proposed modification, explains
    
    the reasons why the United States has tentatively consented to modification of the Judgment, and
    
    discusses the legal standards and precedents respecting modification of consent decrees.  Notice
    
    of the proposed modification will be published and comments invited.  The procedures that will
    
    be followed are described in the United States' Explanation of Modification Procedures, also filed
    
    today.
    
    I.          THE COMPLAINT AND THE JUDGMENT
    
                On December 23, 1993, the United States filed a civil complaint alleging that the
    
    
    
    acquisition of Baroid Corporation ("Baroid") by Dresser Industries, Inc. ("Dresser") would
    
    violate Section 7 of the Clayton Act (15 U.S.C. §7).  The Complaint alleged that the effect of the
    
    SNIPPETS:
  • MEMORANDUM OF THE UNITED STATES IN SUPPORT
  • The United States and Diamond Products International have moved this Court to
  • modify the Final Judgment entered in this action.
  • merger would likely substantially lessen competition in the manufacture and sale in the United
  • States of two oil field service products: drilling fluids and diamond drill bits.
  • Baroid's or Dresser's drilling fluid business, and to resolve the competitive problem in the
  • the United States approved the divestiture by Dresser of Baroid's
  • Paragraph V.F. of the Final Judgment placed restrictions upon transactions that DPI could
  • DPI's diamond drill bit business to Baker Hughes, Inc., Camco, Inc. (now part of Schlumberger
  • Ltd.), or Smith International, Inc., or any of their subsidiaries or affiliates, or combining
  • information about the proposed transaction in advance.
  • Hart-Scott-Rodino Act requirements if the transaction met the standards for notification
  • If the transaction did not meet the standards, notice would be required under the decree, as
  • During the life of this decree, the purchaser of Baroid's diamond bit business
  • with the following notice provision: If such transaction is not otherwise subject to
  • The Department does not believe it would be appropriate to remove the prohibition on a
  • THE LEGAL STANDARDS APPLICABLE TO MODIFICATION OF AN ANTITRUST JUDGMENT WITH THE CONSENT OF
  • (2d Cir.
  • Supp.
  • (citing United States v. Swift & Co., 1975-1 Trade Cas.
  • (CCH)
  • The purpose of the antitrust laws is to protect competition, e.g., United States v. Penn-Olin
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