Feltex NZ plans sell-off

Press, 13 March 1987, Page 10

Feltex NZ plans sell-off

Feltex New Zealand, Ltd, has proposed to sell off Email, Ltd’s whitegoods business, if it is allowed to proceed with a takeover of the major Australian manufacturer, according to industry sources.

The Australian “Financial Review” reported yesterday that the idea was understood to have been floated in a letter from Feltex to Australia’s Trade Practices Commission last week as part of the negotiations for Feltex to

be cleared to make a takeover.

A source close to the action confirmed that the divestment proposal had been made and Feltex managing director, Mr Peter Stanes, is due to reopen negotiations with the TPC next week.

Feltex withdrew its sAust4oo million (SNZ4BOM) share swap offer for Email last November after the TPC held that a successful takeover would enable Feltex to dominate sections of the Australian whitegoods market

through its link with New Zealand’s biggest whitegoods manufacturer Fisher and Paykel, Ltd. (Equiticorp Holdings, Ltd, owns 50 per cent of Feltex and 23 per cent of Fisher and Paykel.) Despite suggestions that Feltex may have difficulty finding a buyer for Email’s whitegoods business, NZPA was told that Electrolux — an Email shareholder — was a potential buyer.

Whitegoods represents about 40 per cent of Email’s turnover.