AN AMALGAMATION.

Lyttelton Times, Volume CXV, Issue 16559, 25 May 1914, Page 7

AN AMALGAMATION.

P. AND O. AND BRITISH INDIA COMPANIES.

By Telegraph—Press Association—Copyright.

LONDON, May 22

It is officially announced that an amalgamation has been arranged between the Peninsular and Oriental and Brit, ish India Companies.

The amalgamation is subject to the shareholders’ approval. It provides for the exchange of British India ordinary shares for thirty-three and one-third of Peninsular and Oriental deferred stock, and preferred stock at cent per cent. The companies will work as separate entities. The Peninsular and Oriental directors will join the British India Board and vice versa, and when the amalgamation is completed the interests of the two undertakings will be in all respects identical.

PROBLEM OF PROTECTING SEA

ROUTES

LONDON JOURNAL’S COMMENT.

(Received Mav 24. 5.5 p.m.) LONDON, May 23

The “ Daily Telegraph,” commenting on the amalgamation and the capacity of the companies for fighting foreign competition, adds that they have histories of which they may be proud. “ Meanwhile,” it continues, “ the problem of Britain safeguarding tlie sea routes in tho Mediterranean and the East is becoming urgent. Our manner of solving or failing to solve it may decide the future of our rule and commerce, besides vitally affecting our position in tho Persian Gulf, whence our navy will secure oil.”