Forum Archive Index - March 2000

["simon dallimore" <smndallimore@hotmail.com>]

SINGAPORE: SIA TALKS ON AIR NZ STAKE STALLED
SINGAPORE, March 22 (Reuters) - Talks by Singapore Airlines (SIA) and 
Brierley Investments Limited (BIL) on a possible SIA stake in Air New 
Zealand have hit a wall over its size, the Business Times newspaper said on 
Wednesday.
"They (SIA) wanted a 40 percent stake in Air New Zealand, but there was no 
way we could guarantee that the New Zealand government would approve that. 
We only have 16.7 percent of the B shares," BIL's chief executive Greg Terry 
was quoted as saying.
"The price was decided months ago and it did not figure at all in the recent 
talks," Terry told the newspaper.
He said the price was well above NZ$3 per share, the Business Times said.
SIA could not be reached for comment on Wednesday on the report.
SIA is negotiating to purchase Air New Zealand unrestricted B shares from 
the New Zealand national carrier's major shareholder BIL.
BIL only holds 17 percent of the company through unrestricted B shares, 
while the rest of its holdings are domestic A shares .
Sources close to the negotiations told Reuters last week that finding a 
bridge between what Brierley has to sell and SIA wants to buy is one of the 
remaining issues between the parties.
The Business Times said under current rules, no single foreigner can own 
more than 25 percent of the New Zealand carrier, while total foreigner 
ownership is limited to 49 percent of the company's
total issued share capital of 567 million shares, the so-called B shares.
Terry said it would not be fair to be asked to pick up another 8.3 percent 
stake from the open market to make up the initial 25 percent stake that SIA 
wanted and still have the deal conditional on SIA obtaining 40 percent of 
Air NZ, the newspaper said.
(singapore.newsroom@reuters.com)
(C) Reuters Limited 2000.
REUTERS NEWS SERVICE
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