By Tess Stynes
Sysco Corp. said it notified U.S. Foods Inc. that it is
extending it agreement to acquire rival U.S. Foods Inc. by 60 days,
in anticipation of antitrust hearings set to start in May.
The food-distributor said the termination date for the accord,
initially reached in December 2013, was moved to May 7 from March
8, in a filing with the U.S. Securities and Exchange
Commission.
Court hearings are set to begin May 5 on the Federal Trade
Commission's antitrust lawsuit against the merger of Sysco and U.S.
Foods, the nation's two largest food distributors.
The FTC has alleged the proposed tie-up would create a dominant
national company that could raise prices and reduce service for
restaurants, hotels, schools and other institutions that buy food,
paper products and a wide range of supplies from Sysco and U.S.
Foods.
During a Wednesday hearing, U.S. District Judge Amit Mehta said
he would consider the case from May 5 to May 8 and would add as
many as three days the following week, if needed.
Judge Mehta isn't conducting a full-blown trial on the FTC's
allegations. Instead, he is considering whether to issue a
preliminary injunction to block the companies from merging while
the FTC holds a longer, more-robust trial in its in-house
administrative court system, beginning in July.
Sysco and U.S. Foods provide food, paper products and a wide
range of other supplies to restaurants, hospitals, schools and
other customers in the food-service industry.
Brent Kendall contributed to this article
Write to Tess Stynes at tess.stynes@wsj.com
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