§ Mr. Milneasked the President of the Board of Trade if he will make a statement on the withdrawal of the Cunard Steamship Company from the merger with British Overseas Airways Corporation; what were the financial terms of entry into the merger; what was the sum involved in the withdrawal; and what profits accrued from the transaction.
§ Mr. JayOn the proposal of the Cunard Steamship Company Limited B.O.A.C. agreed in September of this year to acquire Cunard's holding in B.O.A.C./Cunard Limited. This company was formed in 1962 with an issued capital of £28 million which has since increased. B.O.A.C.'s share was 70 per cent. and Cunard's 30 per cent. The agreed price paid by B.O.A.C. for the Cunard share is £11½ million which is related to the estimated current net asset value. Up to 31st March, 1966, B.O.A.C./Cunard Limited earned profits of £7.7 million after provision for taxation; of this £2.7 million were paid as net dividends to the two partners.