DOJ Eyes Polycom/PictureTel Deal

The proposed $362 million acquisition of PictureTel Corp. by Polycom Inc. has drawn the interest of the U.S. Department of Justice, which has requested additional information from the videoconferencing companies. Though the request will extend the proposed transaction's waiting period under the Hart-Scott-Rodino Antitrust Improvements Act, Milpitas, Calif.-based Polycom still believes the acquisition will be approved and completed in the third or fourth quarter. "Polycom is actively cooperating with DOJ and intends to continue furnishing whatever information the Department needs as quickly as possible so the parties and their customers can begin to realize the substantial benefits of this merger," said Bob Hagerty, president and CEO of Polycom. "We remain confident that the regulators will recognize those positive benefits.'' Polycom announced its intention to purchase Andover, Mass.-based PictureTel in late May (Meetings Today, July 16).