Du Pont Keeps Its Interest

The U.S. Government, which lost its five-year antitrust suit to force Du Pont to sell its 22.6% ownership of General Motors Corp. two months ago (TIME, Dec. 13), announced last week that it would appeal the case to the U.S. Supreme Court. Normally, appeals from a lower court pick out errors of law. But in the Du Pont case the Justice Department said it would challenge Chicago Federal Judge Walter J. La Buy's entire interpretation of the evidence in the case. He had ruled that "Du Pont has not had, and does not today have, practical or working control of General Motors," and that "the Government has failed to prove . . . monopolization." The Government claims that the whole weight of evidence is on the other side, that Du Pont, by its 22.6% ownership, does in fact control G.M. in violation of the antitrust laws.

Du Pont itself appeared unworried by the appeal. Last week, when the company got a chance to reduce its percentage of G.M. stock, it decided to buy instead of sell. In a new stock-option deal, G.M. offered stockholders the right to buy an additional 4,385,000 shares at the rate of one new share for every 20 currently held. Wall Streeters expected Du Pont to sell the options it will get for 1,000,000 new shares (it now owns 20 million), thus reduce the percentage it holds in G.M. But in Wilmington the company announced that it would pick up the options and buy 1,000,000 shares to keep its percentage at the same level. Cost to Du Pont: between $75 and $85 million, depending on the final offering price. At the news G.M. jumped 2 1/8 points, to 100 on the New York Stock Exchange.

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