The Warehouse Saga drags on…..
Posted January 31, 2008on:
We’ve previously talked quite a bit about the issues around the Warehouse case (here,here,here,here,here,here). The Commerce Commission pretty much set a new record in how many times they delayed their original decision. At the end of last year the high court overturned the Commission’s decision clearing the way for Woolworths and Foodstuffs to try and takeover The Warehouse.
Today the Com Com has been cleared to appeal the decision. While I think it’s fairly obvious that I think a takeover should happen, that is neither here nor there. Due process must be followed and the Com Com has a right to appeal (even though I think it is a huge waste of resources!! but hey, the Com Com has to justify it’s existence some how….). After letting this drag on for soooo long I am glad the high court wants the hearing to happen next month. The Com Com’s request to have the hearing put back till April or May is ridiculous. This saga has gone on for long enough and needs to be resolved one way or the other. Investors need certainty and this fiasco will no doubt make firms think twice about mergers in the future when they consider the protracted process they may be put through, and that is not a good thing .After all, the bankers need to pay for their champagne somehow 😉