Fletcher bid vetoed

Press, 9 May 1980, Page 14

Fletcher bid vetoed

PA Wellington, The Examiner of Commercial Practices (Mr A. E. Monaghan) has made a preliminary decision that the, proposed take-over of Carter Holt Holdings by Fletcher Holdings is not in the public interest. The two companies now have about 10 days in which to make submissions to the examiner, before he confirms his decision and forwards it to the Commerce Commission.

A spokesman for the Examiner told NZPA today that Mr Monaghan had made a preliminary decision under the Commerce Act. He had advised the companies that the proposed take-over had

not been approved, and that he wished to refer the matter to the commission.

I The parties had “about 10 | days” in which to make ■ comments to the Examiner, before he reached a final decision on whether to refer the issue to the commission. Under the act, the Examiner can approve mergers and take-overs, but he cannot reject them, and instead must refer non-approved mergers and take-overs to the Commerce Commission if he believes that they are not in the public interest.

The commission in turn may hold a full hearing into the merger or take-over, as it did last year when L. D. Nathans made a successful

take-over bid for McKenzies.The Examiner is not required at this stage to state his reasons why he believes the take-over is not in the public interest. In the McKenzies case he stated his reasons at the time he confirmed his preliminary decision and sent the bid to the commission.

“There are many things to settle; here are two major companies active in the forestry area. There may be some conflict of interest or loss of competition,” Mr Monaghan said. “I’m concerned about the entire aspect of forest production, timber, pulp and paper in what is a big and sensitive area.”