Guinness Peat Group PLC
20 September 2007
Guinness Peat Group plc
GPG's subsidiary, Coats Group Limited, has issued the following statement in
relation to the European Commission's decision on fasteners.
Richard Russell
Company Secretary
Guinness Peat Group plc
20th September 2007
Contacts:
Mike Smithyman, CEO Coats Group Limited UK 00 44 20 8210 5168
Gary Weiss, Chairman Coats Group Limited Australia 00 61 2 8298 4305
20th September 2007
European Commission Fasteners Decision
In relation to the European Commission's decision on fasteners announced
yesterday, Coats notes that full details of the Commission's reasoning are not
yet available. In the interim, Coats has the following comments on the decision:
• Coats notes the Commission's allegation that between April 1998 and
November 1999 European zip manufacturers exchanged price information and in
respect of which the Commission has fined Coats EUR 12.2 million. Coats has at
all times fully co-operated with the Commission's investigation into the
fasteners market and will carefully study the Commission's conclusions once
details are made available before determining whether to appeal against this
aspect of the Commission's decision.
• Coats totally rejects the Commission's allegation of a market sharing
agreement with Prym in the European haberdashery market and in respect of
which Coats has been fined EUR 110.3 million. During the investigation Coats
presented the Commission with ample evidence which refuted this allegation and
demonstrated that in any event a fine was time-barred. Contrary to its rights
under the European Convention on Human Rights, Coats was not permitted to
examine the witness who made this allegation. Coats will vigorously appeal the
decision to the Court of First Instance once the full details of the
Commission's decision have been made available. The Court of First Instance
last week quashed a large part of the Commission's factual findings in the
Needles case for want of proof or clear misinterpretation of the evidence by
the Commission. We have confidence in the impartial, judicial analysis that
the Court applies. As well as rejecting the substance of the decision, Coats
believes that the size of the fine is grossly disproportionate to any possible
impact that such an agreement could have had on the European haberdashery
market. Our customers have certainly not been injured.
• Subject to a review of the details, once received, of the Commission's
decision, Coats remains of the view that any anticipated eventual payment of
fines is adequately covered by existing provisions. A guarantee for the
original amount of the fine will be posted for the duration of the appeal.
Only once we have completed the appeal process will payment of any fine, as
finally determined by the Court, be made.
• It should be noted that the alleged contraventions occurred many years ago,
between 1977 -1999, prior to the acquisition of Coats by the GPG Group and
do not involve any current members of the Coats Board or management team.
Anti-competitive behaviour goes directly against company policy and
represents a serious disciplinary offence.
• It should be stressed that this legacy issue has no impact on Coats current
operations which continue to make good progress. Coats acknowledges the full
support of its shareholder GPG and its role in the successful development of
the business over the last four years.
This information is provided by RNS
The company news service from the London Stock Exchange
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