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quote:NZ Bus to appeal Mana Bus decision
14 August 2006
By SUE ALLEN
New Zealand Bus, an offshoot of Infratil, says it is appealing against a court decision relating to an attempted purchase of Mana Coach Services earlier this year.
But a two-day hearing to set penalties for breaching the Commerce Act will go ahead in Wellington High Court from today.
Problems started for New Zealand Bus, which trades as Stagecoach, in January when it applied to the commission for clearance to buy rival local bus operator Mana Bus.
New Zealand Bus later withdrew the application, prompting a Commerce Commission inquiry and an application for an injunction to stop the purchase on the basis it would substantially lessen competition.
New Zealand Bus operates under the Stagecoach Wellington, Cityline Hutt Valley and Runciman Motors brands.
In June, Justice Forrie Miller ruled in favour of the Commerce Commission, saying New Zealand Bus had breached the Commerce Act when its offer to buy Mana shares became unconditional on March 15.
He also found that Ian Waddell and Kerry Waddell, the vendors of the Mana shares, had breached the Act by being a party to the prohibited purchase.
An Infratil spokesman said yesterday the company was appealing Justice Miller's June decision. The Waddells are also appealing.
Late last month, merchant bank Bancorp made a lightning raid, buying up 74 per cent of Mana Coaches.