Air N.Z., Mt Cook resolute

Press, 10 October 1983, Page 9

Air N.Z., Mt Cook resolute

Air New Zealand and Mount Cook Group, Ltd, appear to be determined to proceed with their original shares agreement, in spite of Friday’s surprise takeover bid by the TNL Group, Ltd (formerly Transport Nelson). Statements by the two companies yesterday confirmed their determination to keep to their original plans.

A “don’t sell” notice to shareholders of Mount Cook Group, issued late on Friday to the Stock Exchange, was confirmed by the Mount Cook board meeting in Wellington yesterday.

It had met to consider a notice of intent to make a take-over bid by TNL, as received on Friday afternoon.

“We find the suggestion of a Mount Cook take-over by TNL is totally unacceptable, and contrary to the best interests of our shareholders,” said the company’s managing director, Mr P. S. Phillips, after the meeting. “The Mount Cook Group’s future is an independent, autonomous company can best be achieved with Air New Zealand, and an association with it must enhance the tourist industry,” he said. The Mount Cook annual report for the year ended June, is being mailed to shareholders today, and the annual meeting is scheduled for October 26. An Air New Zealand spokesman said yesterday that the TNL bid in no way

changed Air New Zealand’s determination to increase its shareholding in Mount Cook.

“We are proceeding with confidence,” he said. The TNL announcement on Friday came as no surprise to Air New Zealand.

“TNL is now simply publicly declaring its hand,” said the spokesman last evening.

“We are surprised, however, that TNL says it is seeking 90 per cent, which seems rather odd in view of the fact that Air New Zealand has secured 30 per cent in addition to the 15 per

cent already held.” Air New Zealand rejected claims by TNL that the increased Air New Zealand shareholding in Mount Cook would create an Air New Zealand-Mount Cook stranglehold on the inbound tourism industry. “In fact, the industry as a whole will benefit from the association of the two companies in a forceful overseas marketing thrust,” said the spokesman. “There is tremendous potential for inbound tourism and moves such as this are designed to ensure that New Zealand gains a bigger slice of the world tourism cake.”