“STAR” AND “SUN”

Grey River Argus, 16 May 1935, Page 2

“STAR” AND “SUN”

Merger Negotiations On £30,000 OFFER. (Per Press Association). AUCKLAND, May 15. In the course of his address at tne annual meeting, to-day, of t’he New Zealand Newspapers Ltd., it he Chairman, Mr Edward Anderson, said the shareholders would be interested to know about developments in Christchurch. The Canterbury holding of shares in their Company were considerable. In fact, ;it might definitely bo claimed that residents in Canterbury had a greater interest in the Company than in any other newspaper published in Chat province. A..' negotiations were in progress for a merger between the “Christchurch Star” and “Christchurch Sun,” he proposed only to say that the Company had made the foliowing offer which, if accepted, should be to the mutual advantage of the shareholders of both companies.

New Zealand Newspapers Ltd., were to issue to “Sun’’ Newspapers Ltd.. 30,000 £1 .•■•hares in New Zealand Newspapers Ltd. as the consideration for the good will of their business. The assets of “Sun” Newspapers Ltd. s'hall be liquidated fob the benefit of the shareholders of that company, and responsibility therefore shall be borne in every respect by “Sun” Newspapers Ltd. From the date of cessation, of the issue of the “Sun,” the evening paper shall carry the title of the “Sun-Star” New Zealand Newspapers guarantee the sale of certain main items of Sun machinery and plant and takes over its stock of paper (estimated at £7,700) at

Di order to provide, for employees of the “Sun” who might be temporarily thrown out of employment, Now Zealand Newspapers included in the offer an undertaking <to pay the sum of £5OOO to provide compensation for those members of the “Sun” staff affected. In

addition to this offer, the company was not unmindful of the future employ merit needs of the staff. Indeed, it had already approached leading newspapers throughout New Zealand in their interests. The Company's offer would prob ably be considered by “Sun” Company shareholders early next month.