Forum Archive Index - July 2001

["tennyson@caverock.net.nz" <tennyson@caverock.net.nz>]

>  
>> (if this option is taken) then they must let more
>> AIRVA be sold overseas and obviously not AIRVB
>> as its already foreign owned 
>


Not necessarily.  I think you will find that the rights issue before 
last issued more AIRVB shares to bring the AIRVB total up to 49%.  
And some of the AIRVA shareholders got those.  There is nothing to 
stop New Zealanders owning AIRVB.



>
>> so there could be a nice
>> market for AIRVA shares coming up, although I get the
>> impression this option is not likely.
>


No chance at all.  The whole point of having the A shares was to 
ensure AirNZ couldn't fall into foreign control.   This is still a 
requirement.



> 
> what's to stop them issuing more AIRVB shares ?  A nice cash
> injection and an increase in foreign ownership for synergy benefits.
>  Sounds pretty good to me.
> 



Because then the company can become majority foreign owned and AIR 
risk losing their landing rights.  So there is no chance of more B 
shares being issued.

The only way out of this dilemma is to abolish the A and B structure 
and just have one class of shares.  This would please Singapore 
Airlines but wouldn't address ther real issue.

The real issue is how to get more New Zealand money into AIR.   At 
the end of all the restructuring AIR must remain 51% kiwi owned.  The 
only way to do that is to find NZ investors who want to invest AIR.   
And with the collapse of Qantas NZ still in people's minds I don't 
see NZ investors lining up. SNOOPY






 
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