CAL Merger Plans

[Occam's Razor]

I would think the DOJ would be hard pressed to allow a company restrict the growth of one of its competitors in any fashion. That would be called monopoly and not good for consumers.

Then you didn't read the DOJ's summary to NWA and CAL in July of 1998.

They had no issue with a merger or other combination of NWA and CAL. Their concern was the "phantom" control that would be possible if NWA were to retain control of the CAL Board (via Bonderman's preferred shares), without consummating full corporate integration. They made it clear that the relationship would not recieve anti-trust immunity.

The commercial agree has a sunset and sets restrictions that could harm the other party (NWA) if CAL were to make adverse merger/alliance decisions.

It's about as illegal as condo association covenants.