WIRELESS-CABLE FUSION

Taranaki Daily News, 16 March 1928, Page 9

WIRELESS-CABLE FUSION

MARCONIS AND EASTERN FRESH PROBLEMS CREATED TERMS NOT YET DISCLOSED By Telegraph—Press Assn.—Copyright. A.P.A. and Sun. London, March 14. The Eastern Cable Company and Marconis announce that through the recommendation of Sir W. Plender and Sir G. Carnsey, they have reached a provisional agreement for a fusion of their interests through a holding company, subject to a satisfactory agreement with the British, Dominions and Indian Governments and also the acceptance of shareholders, failing which the terms cannot be announced. The London Chamber of Commerce carried a resolution that the public interest requires both cable and wireless services and that healthy competition between them is vital to the needs of commerce, also that extra-European telegraph services should be left to private enterprise, the Government’s duty being limited to the protection of the public against excessive charges and taking the measures necessary for national safety. SURPRISE FOR CONFERENCE. MARCONI SHARES JUMP UP. Received March 15, 10 p.m. A. and N.Z. London, March 14. Members of the Imperial wireless and eabie oonference confessed that they were pleasantly surprised at the announcement of the Marconi-Eastern agreement, but deelined to comment upon it in the absence of the terms of the proposed fusion, and also for reasons of secrecy officially imposed. It can, however, be assumed that the problem presented by the Marconi-Eastern combination will have to be most carefully considered by the conference representatives, as upon them rests the responsibility for framing recommendations to the respective Governments. It is regarded as a hopeful augury that die companies were able to reach an agreement while the conference was sitting, because that is likely to assist in the difficult task of reconciling the interests of all parties. The Financial Times says that, according to a city rumour, the amalgamating wireless and cable companies will pool their receipts. Marconis will take 60 per cent, of the net revenue and the associated cables 40 per cent, between them.

Another story is that the Marconi interest in the new holding company is equivalent to £4 per share. Marconi shares opened this morning at 61s 3d. They mounted all day long, closing at 68s. ’ There were excited heavy dealings in the street after the exchange closed, when they reached 70s.