Forum Archive Index - July 2001

["Jeremy" <jeremy@electrosilk.net>]

From: <tennyson@caverock.net.nz>
> > 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 issue is increase in foreign ownership.  This can only occur if the
ratio of AIRVA to AIRVB shares changes or foreigners can buy AIRVA.

Blanket rejection of a ratio increase of AIRVB over AIRVA ignores the
political desire to increase foreign ownership.  This was the premise of the
original post : that AIRVA will become desirable when AIRVA can be bought by
foreigners.

I think you will find that nothing is immitigable about the ratio of AIRVA
to AIRVB.  The only issue is whether AIRVA becomes open to foreign ownership
or AIRVB increases its shares issued.

The political decision is whether to increase foreign ownership ratios or
not.  How it is done is a mere technicality.  Either they open AIRVA to
foreigners and get no cash injection, or they issue more AIRVB and get more
cash.  What do you think they will do?

Jeremy



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