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The Commerce Commission is seeking leave to appeal to the Supreme Court against a decision regarding investment company Infratil's actions in the attempted acquisition of Mana Coach Services.
The Court of Appeal found Infratil was not liable for breaching the Commerce Act as an accessory in the attempted acquisition by its subsidiary New Zealand Bus of Mana Coach Services.
Commission chairwoman Paula Rebstock today said the commission was seeking to clarify the law as to accessory liability under the Commerce Act, which was now unclear following the Court of Appeal decision.
In June the Court of Appeal confirmed a High Court ruling that the attempted acquisition of Mana Coach Services by New Zealand Bus (NZB) was likely to substantially lessen competition in the Wellington regional market for rights to supply subsidised scheduled public and school bus services in breach of the Commerce Act.
The Court of Appeal also upheld the High Court's earlier order that NZB pay over $1.1 million in penalties and litigation costs, and that Infratil, the parent company that owns NZB, was not liable as an accessory.
In June 2006, the High Court had ruled that NZB's attempted purchase of the 74 per cent of Mana that it did not already own, breached the Commerce Act.
At the time of the breach Mana was a family owned and managed business. It is now owned by merchant bank Bancorp New Zealand.
Before the commission's announcement, Infratil requested a trading halt in its shares pending a material announcement.
Infratil shares yesterday fell to a 28-month low of $1.75. They have fallen from $3.12 on October 11.
- NZPA
