[Code of Federal Regulations]
[Title 16, Volume 1]
[Revised as of January 1, 2005]
From the U.S. Government Printing Office via GPO Access
[CITE: 16CFR802.9]

[Page 607]
 
                     TITLE 16--COMMERCIAL PRACTICES
 
                   CHAPTER I--FEDERAL TRADE COMMISSION
 
PART 802_EXEMPTION RULES--Table of Contents
 
Sec. 802.9  Acquisition solely for the purpose of investment.

    An acquisition of voting securities shall be exempt from the 
requirements of the act pursuant to section 7A(c)(9) if made solely for 
the purpose of investment and if, as a result of the acquisition, the 
acquiring person would hold ten percent or less of the outstanding 
voting securities of the issuer, regardless of the dollar value of 
voting securities so acquired or held.

    Examples: 1. Suppose that acquiring person ``A'' acquires 6 percent 
of the voting securities of issuer X, valued at $52 million. If the 
acquisition is solely for the purpose of investment, it is exempt under 
Section 7A(c)(9).
    2. After the acquisition in example 1, ``A'' decides to acquire an 
additional 7 percent of the voting securities of X. Regardless of ``A'' 
's intentions, the acquisition is not exempt under section 7A(c)(9).
    3. After the acquisition in example 1, acquiring person ``A'' 
decides to participate in the management of issuer X. Any subsequent 
acquisitions of X stock by ``A'' would not be exempt under section 
7A(c)(9).

[43 FR 33544, July 31, 1978, as amended at 66 FR 8693, Feb. 1, 2001]