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Reacts to signs of FTC resistance on grounds deal would create SCSI monopoly
MILPITAS, CALIF. - Adaptec Inc. on Thursday halted its efforts to acquire Hyundai Electronics America Inc.'s semiconductor subsidiary Symbios Inc. (Fort Collins, Colo.)-formerly Symbios Logic Inc.-after receiving strong signals from the Federal Trade Commission that the government would oppose the acquisition because of the dominant market position Adaptec and Symbios would have in SCSI (Small Computer Systems Interface).
Adaptec had planned in February to purchase Symbios in an all-cash transaction totaling $775 million. The company now says it will halt all efforts to maintain even a minority investment in Symbios, and will take a $20 million charge in the current fiscal quarter to end the transaction.
According to a Washington source, the full commission had been scheduled to vote on the merger on Thursday afternoon, but had received extensive information...