Radio offer withdrawn

Press, Volume CXII, Issue 32879, 30 March 1972, Page 2

Radio offer withdrawn

(N.Z. Press Association) WELLINGTON, March 29. The Wellington-Hatt Broadcasting Company, Ltd, has decided to withdraw its conditional offer of shares in the company to two newspaper companies, the Broadcasting Authority was told yesterday.

Mr N. T. Gillespie, counsel for Wellington-Hutt Broadcasting, said the proposed merger, announced this month, between the Wellington Publishing Company, Ltd, and Blundell Brothers, Ltd, was responsible for the decision.

The Wellington Publishing Company publishes the “Dominion” and Blundell Brothers the “Evening Post.” The authority was hearing applications for radio warrants from Wellington-Hutt Broadcasting and Radio Wellington, Ltd. Mr Gillespie said his client company was also not prepared to issue any shares to the proposed amalgamated publishing company.' The chairman of directors of Wellington-Hutt Broadcasting (Mr C. O. Gibbs) advised the authority that the announcement of the merger was a complete surprise to the applicant company’s directors. Mr Gibbs said it was agreed at a meeting of the company’s directors that the merger created a monopoly of newspaper control in the Wellington region.

It was considered that with the N.Z.B.C.’s existing monopoly of television ana radio in the region, it was important in the public interest for the applicant company to be independent. The company was not now prepared to offer any shares

ito the proposed Amalga- ; mated Publishing or its subI sidiaries. Furthermore, the > company was willing to ■ accept a rider on the radio • warrant preventing the monopoly newspaper company < from owning shares, Mr > Gibbs said.