FOR IMMEDIATE RELEASE: January 3, 1991 COURT COMPLAINT CHARGES GENERAL CINEMA CORP. VIOLATED PREMERGER NOTIFICATION LAWS IN ACQUISITION OF CADBURY SCHWEPPES STOCK General Cinema Corp. did not comply with federal premerger notification requirements when it acquired stock in Cadbury Schweppes p.l.c., the government has charged. At the Federal Trade Commission's request, the Department of Justice authorized Federal Trade Commission attorneys to file a complaint in federal court today. The complaint charges that General Cinema violated the premerger reporting provisions of the Hart-Scott-Rodino Act. The HSR Act requires companies to notify the FTC and Department of Justice, and to observe a waiting period, before making certain acquisitions. The complaint alleges that General Cinema began acquiring Cadbury Schweppes' stock in early September 1986, and that later that same month, its accumulated holdings of the stock exceeded the $15 million threshold that normally triggers the HSR notification and waiting period requirements. General Cinema was required, under the HSR Act, to file a report and observe a waiting period, according to the complaint. General Cinema failed to comply with the requirements, the complaint charges. General Cinema eventually filed an HSR notification on January 26, 1987, and the waiting period expired February 25. According to the complaint, General Cinema remained in violation of the HSR Act from September 11, 1986, to February 25, 1987. Under the HSR Act, any person that fails to file an HSR report and observe a waiting period shall be liable for a penalty of up to $10,000 a day. The complaint asks the court to order General Cinema to pay the maximum civil penalty allowed by law. The complaint was filed January 3, 1991, in the U.S. District Court for the District of Columbia. (More) eneral Cinema, based in Chestnut Hill, Mass., is a major motion picture exhibitor and department store retailer. During the period that it was acquiring stock in Cadbury Schweppes, General Cinema was also in the carbonated soft drink industry. Cadbury Schweppes, based in London, England, is an international manufacturer and supplier of confectionery and soft drink concentrate products. Copies of the complaint are available from the FTC's Public Reference Branch, Room 130, 6th St. and Pennsylvania Ave. N.W. Washington, D.C. 20580; 202-326-2222; TTY 202-326-2502 # # # MEDIA CONTACT: Susan Ticknor, Office of Public Affairs, 202-326-2181 STAFF CONTACT: Joseph Brownman, Bureau of Competition, 202-326-2605 (FTC File No. 871 0047) (Civil Action No. 91-0008) (GenCin)