CP/2/10/1 - Pan owners’ correspondence

CP/2/10/1

Sub file

Pan owners’ correspondence

1967-1973

135 items Mixed

Macmillan Publishers
Collins (Firm : London, England)

Prior to 1969, Macmillan and Collins owned all the equity shares of Pan Books Limited. At that time a substantial proportion of the paperback rights held by Pan had been assigned to it by Heinemann. In these circumstances Heinemann informed Macmillan and Collins that unless Heinemann could buy into Pan or another paperback house it would start its own paperback list. In view of the damage which could have been done to Pan’s business if Heinemann had started its own general paperback list and withdrawn its titles from Pan, Macmillan and Collins agreed between them to sell one third of the equity shares of Pan to Heinemann.

Heinemann subsequently announced its intention of starting its own paperback list and in view of its investment in Pan and the basis on which it acquired its investment from Macmillan and Collins, agreed that the Heinemann list would not compete with Pan’s list. [Extract from the supplemental agreement to the agreement dated 28.3.69].

This file contains papers of the Pan owners: Macmillan, Collins and Heinemann. They refer to the three companies’ division of shares and interests within Pan. A 1967 letter from Maurice Macmillan describes the share interests of the three companies and the competition between Fontana (Collins’ paperback imprint) and Pan.

Bonus schemes, salaries of Pan executives (1972) and Pan pensions are discussed.

Also covered is Heinemann’s decision in 1973 to either start its own paperback house, to start its own paperback list, or to buy out Pan. Correspondence highlights the considerable tensions relating to this. Ian Chapman of Collins raises concerns about Heinemann’s creation of its own [titles] list in a letter dated 18.4.73.

Includes draft agreements, meeting agendas and minutes, financial result figures, first quarter results for Pan, international paperback turnover figures, sales budgets for 1974-76, proposals for a joint venture arrangement between Pan Books and a hard-cover publisher, and memoranda on a new profit-sharing scheme.

Correspondents include Harold Macmillan (26.8.73), Frank Whitehead (Managing Director of Macmillan), Ralph Vernon-Hunt (Managing Director of Pan), CP and others. Also includes summary notes by CP.