Merger appeal adjourned

Press, 28 July 1987, Page 26

Merger appeal adjourned

PA Wellington The appeal hearing attempting to clear the way for Wattie Industries and Goodman Fielder to merge, was adjourned in the High Court at Wellington yesterday until tomorrow.

Mr Justice Jeffries and two lay members of the court, Mr W. J. Shaw and Mr A. G. Lang, were to begin hearing an appeal against a Commerce Commission decision barring the merger. After just an hour the judge said the case seemed to be sinking and there had to be decisions made to keep afloat. From among the 12 lawyers appearing for the parties there has been concern expressed about the filing of new affida-

vits, among them one from Wattie managing director, Mr Cliff Lyon, proposing divesting companies to make the merger more acceptable. One of the respondents, Bromley Park Hatcheries and 15 others, wants two days to reply to Mr Lyon’s affidavit. Defiance Mills, Ltd, previously with the Bromley group, instructed separate lawyers at the week-end when a conflict of interest arose. Defiance lawyer, Mr Michael Reed wants three days to familiarise himself with the case. Adjourning the hearing, Justice Jeffries said there would also be a Tuesday night deadline for filing affidavits. When the case resumes,

Goodman’s lawyer, Mr Bill Wilson, will introduce the appeals and then the parties have a chance to cross examine people who gave evidence in affidavits.

Tomorrow morning the court will also hear argument on whether the Commerce Commission chairman, Mr John Collinge, can be cross-ex-amined.

The Commerce Commission is the first respondent to the appeals. Its lawyer, Mr Tom Gault, Q.C., said the Commission would not take an adversative role in the appeal.

Other respondents are Bromley Park Hatcheries and 14 others, Ireland Group, Ltd, Yates Cor-

poration, Ltd, United Wheatgrowers N.Z., Ltd, and Defiance Mills, Ltd.

Mr Gault said the case was looking less like an appeal from what was put to the Commission, and more like some new proposal.

“Now when the appeal is starting there is a further affidavit filed saying the appellants are prepared to make even further divestments," Mr Gault said. He said it made a mockery of the judicial conferences and time table set to determine the progress of the case. The Commerce Commission decided in May that the two food conglomerates could not merge.