Wednesday 30th November 2016 |
Text too small? |
Cavalier Corp shares were halted from trading as the New Zealand carpet maker awaits the outcome of an appeal against a High Court ruling which gave the green light to the merger of its wool scouring operations.
A judgment on the appeal by rival carpet maker Godfrey Hirst is due today and Cavalier has requested its stock be halted from trading to allow it to consider the implications and prepare its response, the Auckland-based company said in a statement. The shares closed yesterday at 73 cents, having gained 20 percent this year.
Australia's Godfrey Hirst wants to overturn the regulatory approval letting Cavalier's 50-percent owned Cavalier Wool Holdings buy New Zealand Wool Services International's wool scouring business and assets, arguing that an earlier ruling was mistaken in agreeing with the Commerce Commission's treatment of productivity gains flowing to foreign shareholders.
The transaction was allowed because while the commission found it would give the wool scourer a monopoly on the supply of wool scouring services and the supply of wool grease and be able to raise its prices, there was a broader public benefit in fending off competition from cheaper foreign rivals.
The scouring merger has been on hold pending the outcome of the appeal.
BusinessDesk.co.nz
No comments yet
Meridian Energy monthly operating report for June 2025
July 16th Morning Report
AIA - June 2025 Monthly traffic update
CHI - Q2 2025 Operational Update
July 15th Morning Report
BPG - Blackpearl Acquires US AI Platform to Accelerate Growth
TGG - Response to media speculation
ARB - Annual Meeting Date and Director Nominations
CNU - Q4 FY25 Connections Update
MOVE FY25 Results and Investor Briefing 29 August 2025