BRITISH SHIPPING

Evening Star, Issue 21641, 9 February 1934, Page 8

BRITISH SHIPPING

THE NEW MERGER SUBSTANTIAL GOVERNMENT ASSISTANCE (British Official Wireless.) Press Association—By Telegraph—Copyright, RUGBY, February 8. (Received February 9, at 1 p.m.) It was announced in the: House of Commons that 'an ' agreement, conditional upon the sanction of Parliament,; had been entered into between the Cunard Company, the Oceanic Steanii Navigation Company, and the Treasury, whereby financial facilities would be , provided by the Government for the completion of the neiv, giant liner; known as No. 534. The necessary legits lation would shortly be introduced* Power also would be taken to give as* sistauce in laying down a sister ship,' bub no committments in that regard had been undertaken. A White Paper giving the terms of the agreement states that as a result, of the negotiations suggested by the Government, the chairman of the tw» boards recently arranged terras for, a> merger in a new company of tho, Cunard and Oceanic North Atlantic interests. The agreement provides thati tho new merger company shall hacalled “ Cunard-White Star Limited,”! or some other name to be agreed upon l by all the parties. In order to provide the requisite finance for the completion of No. 534 the Treasury will make advances not exceeding in! all £3,000,000 in the following sequence:—Firstly, advances not exceeding £1,000,000 to the Cunard Company, to be secured by the issue at par of Cunard debentures and* stock, the advances to be-handed ovdg by the Cunard Company to the merger company. Secondly, advances not ex* ceeding £1,000,000 to the merger com* pany to be secured by the issue at par of income debenture stock (class A) o£ the merger’company. In addition, the Treasury will from time - to- time advance to the merger company sums noti exceeding ; £1,000,000 to provide the requisite working capital. Of thia amount the first £750,000. advanced will be secured by the issue at par of addi* tional debenture stock of the merger company, and the remainder will ba secured by the issue at par of incoma debenture stock of • the merger company (class B). The legislation is to include power to the Treasury to advance to the merger company the- cost not exceeding £5,000,000 of an additional new, ship or. ships on terms analogous tothose on which the advances are made to the merger company towards the completion of No, 534. The memorandum of agreement be* tween the companies provides that the new merger company shall acquire the North Atlantic gpqdwjll of both companies, their North Atlantic! fleets, and the unfinished ship No. 534,and that after its formation a board of ten shall, .comprise six nominated by, the Cunard Company and four by the Oceanic Company in proportion to th* shares of capital.: