European General Court Fasteners Judgment

RNS Number : 2498G

Guinness Peat Group PLC

27 June 2012

 



GUINNESS PEAT GROUP PLC

("GPG" or the "Company")

Announcement

European General Court Fasteners Judgment

The European General Court today delivered its judgment, dismissing Coats' appeal on all counts and upholding the €110m fine imposed by the European Commission in its decision of 19 September 2007. 

Coats is extremely disappointed with the Court's decision and its legal counsel are considering whether there are any grounds for further appeal to the European Court of Justice.  Coats maintains that the European Commission's allegations of a market sharing agreement in the European haberdashery market in the period from 1977 to 1998 are unfounded.

Including €28m of interest accrued from the date of the original European Commission decision, the cost of this decision to Coats will be €138m.  It has maintained a provision of €45m against the possible cost of this fine, leaving an additional €93m to be provided and accounted for in Coats half year figures to 30 June 2012; €65m will be treated as an exceptional item within operating profit and €28m will be treated as an exceptional interest cost.

Coats refinanced its senior debt facilities in October 2011, making allowance for the possibility of an unfavourable judgment, as has now occurred. It therefore has more than adequate banking facilities to allow it to pay the fine.

Chris Healy

Company Secretary

Guinness Peat Group plc

Tel: [phone]

27 June 2012

Enquiry details are:

New Zealand and Australian media:      Geoff Senescall on:        [phone]

UK media:                                        Kevin Smith on:             [phone]

 

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