UNDERWOOD AND OLIVETTI

Press, Volume XCIX, Issue 29173, 6 April 1960, Page 23

UNDERWOOD AND OLIVETTI

“The Press” Special Service ' AUCKLAND, April 5.

The Underwood Corporation, typewriter and office equipment manufacturer, New York, has not been taken over by the Olivetti Corporation, of Italy. The rumoured takeover was denied yesterday by Mr M. E. Meek, of New York, sales director of the international division of the Underwood Corporation, who is visiting New Zealand. The Olivetti Corporation now had an interest in Underwood Corporation, Mr Meek said, as a result of the recent merger of interests, the basis of which was that Olivetti had bought 405,000 unissued shares of Underwood’s Treasury stock for 9,000,000 dollars. This gave the Olivetti Corporation a 35 per cent, interest in Underwood’s.

It had been agreed, however, that to conform with the Sherman anti-trust laws, the two corporations could operate as one in the United States, but that on the international field they should continue to operate as separate and competing companies. The result of this, as far as New Zealand was concerned, said Mr Meek, was that the products of both companies would continue to be available through the two companies and agents in this country. The franchises would not be disturbed in any way, and the agents for each company would continue to act as they had in the past. The rumour that machines produced by one company or the other would no longer be available was unfounded.