ADVERTISEMENT

EU opens antitrust investigation into IBM takeover bid

Deals

The European Union’s competition regulator has opened an in-depth antitrust investigation into IBM’s takeover bid for Swedish software company Telelogic.

The European Commission said on Wednesday that a preliminary market investigation found the proposed transaction would raise serious doubts as to its effect on competition. Both IBM and Telelogic are active in the market for software development tools. The commission identified competition concerns with regard to two of these product markets: software modeling and requirements management tools. In these markets IBM and Telelogic are direct competitors and are the leading vendors world-wide.

The combination would strengthen IBM’s market position for certain types of software development tools, in particular so-called “software modeling and requirements management” tools, the commission said. Modeling tools are designed to help software developers model the software before developing it. Requirements management tools are designed to streamline and document a development team’s analysis of the requirements.

According to EU antitrust rules, the commission now has 90 working days until Feb. 20. 2008 to decide whether to approve the takeover. IBM announced in June it would buy Telelogic for about €550 million ($776 million). (people.com)

ADVERTISEMENT

PMI edges down to 52.2 in November Analysis

PMI edges down to 52.2 in November

Lawmakers approve residency permit for digital nomads Parliament

Lawmakers approve residency permit for digital nomads

The strongest move - Morgan Stanley Hungary head and Chess F... Podcasts

The strongest move - Morgan Stanley Hungary head and Chess F...

ITM, capital gov't agree on support for public transport City

ITM, capital gov't agree on support for public transport

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.