COLES AND WOOLWORTHS

Wanganui Chronicle, Volume 80, Issue 133, 7 June 1937, Page 11

COLES AND WOOLWORTHS

MODIFICATION OF MERGER SCHEME Discussions between representatives of G. J. Coles and Co., Ltd., and Woolworths Ltd., regarding the proposed amalgamation of the two chain store organisations have been continued in Sydney. According to the Age, Melbourne, it is understood that the suggestions for an amalgamation of the two organis'ations, with a parent holding company, may be modified, particularly as both companies have preference shares carrying different divi[dend rates, and as Coles have no subsidiaries while Woolworths have sev- , eral, the scrip being held over a I widely scattered area. j It is also understood that the present negotiations between the two concerns are now being directed not toward a merger but toward arriving at an amicable working agreement designed to cut down manufacturing costs, overhead expenses and unnecessary opposition in future expansion and and establishment of new stores. It is felt the savings in administrative expenses would be considerable. A complete fusion of the two companies into one organisation is believed to be almost impossible in present circumstances. Under the articles of association of G. J. Coles, a transfer of the company’s assets could not be effected without the consent of two-thirds in number and value of the shareholders present at a meeting called speciall.’for the purnose.