COMPANY MERGER

Hawera Star, Volume XLVII, 16 March 1928, Page 9

COMPANY MERGER

ALLOCATION OF SHARES. IN NEW ORGANISATION. MARCONI AND EASTERN. BY CARLE-PRESS ASSOCIATION—COPYRIGHT Received 12.50 p.m. ito-day. LONDON, March 15. In order to prevent any possible misunderstanding, 'the- directors of the Eastern Company and Marconi’s have have issued a further statement signed by Sir William. Pleader and Sir Gilbert Garhscy on their behalf as under: The directors of both companies recommend the arrangement for fusion through, a holding company; the arrangement should be dependent on an agreement made with the British Government and the Governments of the Dominions and India, which will be satisfactory to the Eastern Company and Marconi. ■ Sir William Plender and Sir Gilbert Garnsew append a broad outline for the proposed allocation of capital in the new holding company as follows: — Five and a half per cent, cumulative shares 1 at 20s- each, 20,000,000 to the Eastern Company and 3,500,000 to Marconi, a total 0f'23,500,000. Seven and a half per cent, non-aecinnulative “A” ordinary shares of 20s, 13,200,000 to the Eastern Company and 8,000,000 to Marconi, a total of 21,200,000. “B” ordinary shares of 20s, 3,150,000 (equal to 35 per cent.) to the Eastern Company and 5,850,000 (equal to 6;> per cent.) to Marconi, a total of 9,000,000. Votes are allotted to holders of “A and “B” shares in the following proportions: Eastern Company 15,300,000 (equal ,to 56.25 per cent.), Marconi 11,900,000. The ncw company would acquire from Marconi the whole of its ordinary preference debentures capital, which would bo satisfied out of the foregoing considerations, and acquire -from the Eastern Company the whole of its ordinary shares, leaving the preference and debenture issues undisturbed. Eastern would nominate twelve directors" and Marconi* eight—A.P.A. and “Sun.”

TRA NS-ACTIONS- IN MARCONI S

TURN OVER ON NEW YORK

EXCHANGE

Received 11 a.m. to-day. NEW YORK, March 15. In one of the largest turnovers in a single dav Wall Street has ever seen the shares' of the Canadian Marconi Company rose to a -new high level or the curb market. In five hours tin transactions totalled 55/,30c) 1 shares more than half the total sales on tin curb market. MANY RUMOURS CURRENT. GOVERNMENT SERVICES CONCERNED. Received 1.35 p.m. to-day. LONDON, March 15. The joint not-eo f warning issued by the Eastern Company and Marconi tonight was probably designed to cor root, misleading rumours. One such stated, with -some show of authenticity, that the agreement included provision for. their taking over Post Office wireless cables, so that the British Government’s State enterprise in external communication shall cease. It was indicated also that the Dominion Governments supported the change. The official statement then came at a good time with reference to the arrangement being dependent on an agreement, etc. The latter was made somewhat more explicit by Mr Ivellaway, who, when asked if the proposed fusion would involve taking over the Government wireless- and aebles, replied that what was meant by a satisfactory arrangement with the Government was -a subject. which must be discussed with the imperial Wireless Conference before the public statements could be made. Whether the Eastern Company and Marconi have already formulated proposals for taking over the Government services is unknown. The utmost secrecy is being observed about this point. The Imperial Wireless Conference met in the afternoon, but merely received ac opy of the joint statement and adjourned till to-morrow, when it is- expected that the- principals will indicate the nature of their proposals, or at least outlines. —A.P.A. and "Sun.”