Forum Archive Index - April 2000

["Brett & Leeanne Phillips" <bret-lil@ihug.co.nz>]

For those of us who missed the boat with FLP today and probably tomorrow, I
suggest you keep a close eye on AIRVB over the next week or two. While
Qantas has announced they are in the market for a $700 million to $1 billion
slice of AIR NZ, their changes seem very slim, based on Government
intervention. All their offer really does is put further pressure on BRY and
Singapore Airlines to strike a deal sooner rather than later.

You can just take a look at the similarity in the board of Directors to see
the likely deal making between SIA and AIR NZ. With the President of Temasek
Holdings(a major stakeholder in SIA) also being only the BRY board it
doesn't take much to thought to see the likely outcome. Also with the
listing of BRY on the Singapore Stock Exchange the directorship ratio will
turn in favour of the Singaporeans. BRY presently hold around 17% of AIRVB
and will be keen to pick up another 8% to achieve the minimum levels SIA
will try to acquire. SIA will strike a deal with BRY to accomplish their
desired holding and I believe Qantas is just stalling for time, while maybe
trying to steal some of the limelight from SIA.

The figures of $3.50 to $4.00 have already been suggested by the companies
and commentators involved, so this seems like money for jam from a buying
prospective when the price is hovering around the $2.40 mark. BRY will sell
its stake in AirNZ, the only questions are who too and when?? I'll let you
make you own assessment on that, but suggest a possible 40-50% gain is not
unrealistic within the near future. Makes you think after seeing FLP's price
hike today.

Happy Prospecting

Cheers Brett




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