Sharechat Logo

GPG's Coats unit loses European appeal

By Paul McBeth

Monday 6th October 2008

Text too small?
Guinness Peat Group’s (GPG) Coats thread-maker subsidiary lost its second appeal for a reduction in fines imposed for fixing prices of sewing needles in Europe.

The European Court of Justice rejected the company’s claim that Coats had a passive rather than an active role in the cartel. Coats had already managed to convince a lower court to reduce the fine to 20 million euros from 30 million.

The appeal was “clearly unfounded,” the court said, according to a ruling posted on its website.

Shares of GPG fell 2.4% to NZ$1.20 and have dropped 29% in the past three months. Coats is the biggest investment for the company chaired by Ron Brierley, accounting for 23% of total assets as at June 30.

The European Commission, the antitrust agency for the European Union, accused Uxbridge-based Coats, Germany’s William Prym GmbH and Entaco of operating a cartel in the haberdashery market between 1994 and 1999. They were Europe’s main needle suppliers in a market worth more than one billion euros per year.

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

GPG still wrangling UK pension liability, Coats 1H earnings more than doubles
Guinness Peat completes $1.4 billion in asset sales, turns focus to Coats
Guinness Peat exits last asset outside Coats, sells Tower stake for $118 mln
GPG focuses on cost cutting as restructuring plan is delayed by UK pensions regulator
GPG names new non-executive chairman of Coats
GPG says UK regulator extends investigation into its pension schemes
GPG pension headache puts brake on wind-down plan
GPG sells stake in ASX-listed Ridley Corp for A$54 mln in cash
GPG to reap 92 mln pounds from latest round of asset sales
GPG thrown curved ball as UK regulator looks at Coats pension plan