Stock-firm merger in doubt

Press, 23 September 1983, Page 1

Stock-firm merger in doubt

PA Wellington The proposed merger between Dalgety New Zealand, Ltd, and Crown Consolidated, Ltd, is contrary to the public interest, according to a provisional ruling by the Examiner of Commercial Practices, Mr Peter Donovan. Mr Donovan advised the companies of the decision on Wednesday afternoon. He said he was allowing more time for further representation by the companies. Mr R. B. Weir, chairman of Crown, and Mr Eric Millar, managing director of Dalgety, said in a joint statement yesterday that they were disappointed at the delay, but that the merger proposal was still alive. “We are holding further discussions with the Examiner and we are providing him with further evidence of the need for the merger,” they said. “Our hope is that he will exercise the powers available to him and consent to the merger without forcing us into the substantial expense and time delays of a Commerce Commission hearing. The Examiner is required to

make a final decision by October 18.

“The enthusiasm for the merger by the two companies remains. We are convinced that the merger is in the best interests of our 4400 staff, of our thousands of farmer clients, of our 19,000 shareholders and, ultimately, of the whole rural economy,” they said. Mr Weir said, “We outlined to Crown shareholders the rationale for the merger in a notice of an extraordinary general meeting on October 5. Nothing has changed since then to give us any grounds for reconsideration.

“We are also heartened by the extent of farmer and shareholder support. To date, more than 1000 proxies have been received in favour of the chairman for this meeting and there are still 11 days to go before the closing date by which proxies must be received. Normally, we receive 300 to 400 proxies for our meetings. “We are also concerned about the unsettling effect the delay is having on our staffs, who have been supportive of the merger,” said Mr Weir.