Court grants interim stay of court judgment on Warehouse

The High Court today granted an interim stay of execution of the judgment granting clearance for both Woolworths and Foodstuffs to buy The Warehouse Group.

The stay will remain in place pending a substantive hearing on the Commerce Commission's application seeking leave to appeal the High Court's decision granting clearance.

The Appeal Court is due to sit on January 29 to decide whether leave to appeal will be granted.

The commission decision yesterday to contest the High Court decision sent Warehouse shares down 12 per cent yesterday as investors fretted about the outcome and the time it would take for the appeal.

Last month the High Court overturned the commission's decision to decline clearance for either potential acquisition.

Commission chairwoman Paula Rebstock said that appealing the judgment was important given the precedence.

The appeal would raise questions of law, including the application of competition law to mergers and acquisitions, and the impact of the proposed acquisitions on competition in the large supermarket markets.

Warehouse shares were up 9 cents to $5.56 today.

- NZPA