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Politics & Government

Judge considers bid to block merger of voting machine giants

Kevin G. Hall - McClatchy Newspapers

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September 25, 2009 07:25 PM

WASHINGTON — A federal judge in Camden, N.J., agreed late Friday to hear a request for an emergency injuction that could halt Election Systems & Software's announced acquisition of Diebold Inc.'s Premier Election Solutions.

The quietly arranged shotgun wedding between the two voting-machine giants would give ES&S control of election systems in use in almost 70 percent of the nation's voting precincts. Federal Judge Robert Kugler agreed to hear Tuesday the request for immediate injunction brought by a small competitorm, Hart InterCivic Inc.

Hart argues that waiting to resolve the matter could affect elections across the nation because state and local officials won't be able to wait on a decision and would have to do business with ES&S.

Hart's attorney, Jonathan Rubin, an anti-trust specialist for the Washington law firm Patton Boggs, contends that jurisdictions across the nation select voting-machines based on competitive bids, which would be next to impossible if the acquisition went through.

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"We're hopeful that the judge will recognize the profound public importance of putting an immediate stop to the deal," Rubin told McClatchy.

Although the law does not require ES&S to inform the federal government of its merger plans, the public nature of voting machines demands a certain measure of advance disclosure, Rubin maintains.

"The reason the government isn't here is because these parties did a stealth transaction in an apparent attempt to end-run the government," he said.

ES&S executives could not be reached Friday night, but have defended the merger with a weaker rival as in the public interest.

Premier Election Solutions is owned by Diebold, a company caught in a swirl of controversy during the 2004 presidential election amid charges of irregularities and technical glitches.

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