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1、PUBLICVERSIONASTUDYOFTHECOMMISSION’SDIVESTITUREPROCESSPreparedbytheStaffoftheBureauofCompetitionoftheFederalTradeCommissionWilliamJ.BaerDirector1999TheviewsexpressedhereinarethoseoftheStaffoftheBureauofCompetitionanddonotnecessarilyreflecttheviewsoftheCommissionorofanyindividualCommissioner
2、.AcknowledgementsTheon-goingDivestitureStudyisajointprojectoftheFederalTradeCommission’sBureauofCompetitionandBureauofEconomics.Thefollowingindividualshavehadprimaryresponsibilityforthedesignandconductofthestudy:FortheBureauofCompetition:AssistantDirectorDanielP.Ducore,KennethM.Davidson,Nao
3、miLicker,andTonyaWilliams.FortheBureauofEconomics:HaroldE.Saltzman,DeputyAssistantDirectorCharissaP.Wellford,andthenDeputyAssistantDirectorR.MichaelBlack.TheDivestitureStudyhasbenefitedfromcommentsandreviewbyProfessorDavidJ.RavenscraftoftheKenan-FlaglerBusinessSchoolattheUniversityofNorthCa
4、rolina;AssistantDirectorDavidBaltoandDeputyAssistantDirectorRobertaS.BaruchoftheBureauofCompetition;andKennethKelly,thenAssistantDirectorTimothyDaniel,AssistantDirectorDenisA.Breen,andAssociateDirectorPaulA.PaultleroftheBureauofEconomics.Inaddition,theconductofthestudyhasreceivedassistancef
5、romresearchanalystsEileenKielyandElizabethAutry,lawstudentsGianlucaBracchiocchi,AngelaGaddisandIanOtto,andeconomicsstudentsEdwardBurns,WilliamCohen,MichaelGirondo,KelleyMartin,MarenMikkelsen,MaryKathrynRobinsonJoshuaWright,andAustinZeiderman.TheStaffReportwaswrittenbyKennethM.DavidsonandNao
6、miLicker.iiExecutiveSummary1ThisReportdiscussestheCommission’son-goingDivestitureStudy.Itevaluatestheresultsofnumerousinterviews,conductedinacase-studyformat,forinsightsintotheCommission’sdivestitureordersanddivestitureprocess.Itdiscussestheenforcementpoliciesreflectedinthoseordersandinthed
7、ivestiturecontractsundertakenbetweentherespondentsandproposedbuyers.ThisdescriptionofdivestiturepolicyandpracticeisintendedtogivepersonsinsideandoutsidetheCommissionacommonframeworkinwhichtodiscussbothgeneraldivestiturepoliciesandtheirapplicationtospecif