DOJ seeks more information on DigitalGlobe deal
LONGMONT, Colo. (AP) — DigitalGlobe said Monday that the Department of Justice is seeking further information about its planned acquisition of GeoEye.
The satellite and aerial image company announced in July that it is buying rival satellite company GeoEye in a cash and stock deal worth about $453 million.
DigitalGlobe, whose images are used for defense, intelligence, mapping and environmental monitoring, said the deal creates a more efficient and diversified company better positioned to thrive as the Pentagon makes severe budget cuts.
The Department of Justice has sent two requests to DigitalGlobe for information about the deal, which the company says are a standard part of the regulatory process. They requests extend the waiting period under certain antitrust laws that prohibit the deal from closing until the information is provided by the company, or until the federal government lifts the waiting period.
DigitalGlobe, based in Longmont, Colo., said it expects to promptly respond to the requests and to continue working cooperatively with the Department of Justice as it conducts its review of the proposed combination. It still expects the deal to close in this year's fourth quarter or next year's first quarter.
The companies had been eying a deal for months to combine the two companies before securing an agreement. DigitalGlobe said in May that it rejected an offer from GeoEye worth $792 million and revealed that it had already bid for GeoEye, based in Herndon, Va.
DigitalGlobe's shares fell 44 cents to $21.30 and GeoEye's shares fell 48 cents to $27.47 by midmorning.
Business Photo Galleriesview all
- 36901Oklahoma weather: Crews work to clear storm damage in Oklahoma City as the state braces for severe weather Sunday.
- 36295Oklahoma tornadoes: 'It took it all'
- 32626Oklahoma Severe Storm Updates
- 8549Wild hogs continue to be a growing menace across Oklahoma
- 5487OKC Thunder GM Sam Presti won't amnesty Kendrick Perkins
- 4132Oklahoma City Thunder: What could Serge Ibaka learn from Hakeem Olajuwon?
- 4021Oklahoma State football: Limiting Wes Lunt's transfer options makes Mike Gundy look bad