Airline concern about group

Press, 8 June 1985, Page 1

Airline concern about group

PA Wellington Air New Zealand said last evening that it was concerned ■ about the future ownership of Mount Cook Group, Ltd, after the Commerce Commission yesterday declined its application for a majority interest in the company. The decision, which was carried with the dissent of the commission’s chairman, Mr John Collinge, prohibited Air New Zealand from taking its present 30 per cent shareholding in the smaller airline to 77.03 per cent.

The commission had also rejected a separate application by Goodman Group, Ltd, to increase its stake to 47 per cent. The public affairs manager of Air New Zealand, Mr Bob Wallace, said, “We hold

a concern that Mount Cook’s future ownership looks to be uncertain.”

Mr Wallace was referring to the fact that Dominion Breweries Hotels, Ltd (Auckland), which held 31.56 per cent in the company at the beginning of this year, was wanting to sell its share iif.me company.

The third-biggest shareholder in Mount Cook at the beginning of this year held only 2.17 per cent. “The question of the shareholding in the company is open to question. We were looking for 70 per cent, Goodman wanted 47 per cent, and so the ownership of the company remains fragmented,” Mr Wallace said. Commission decision, page 23