The News Corp decision to pull back has clouded Ansett's future. ANZ, which owns half of the airline, is keen to acquire the remainder, and says it is willing to talk to SIA on other ways of accommodating the latter's interest in Australasia.
But SIA chief executive Cheong Choong Kong says: "There are opportunities beckoning from outside Australasia. We shall shift our focus to these."
On the eve of the News Corp decision, it looked as though ANZ would exercise its pre-emptive right. ANZ's major shareholder, Brierley Investment, had raised funds that could help ANZ to buy the rest of Ansett. ANZ had solicited pledges from institutional investors for more capital to support such a move. Sir Selwyn Cushing, ANZ and Brierley chairman, has said publicly that he favours ANZ's move.
Brierley has increased its stake in ANZ to 47% - and to 60% within three months - a move some analysts say could lead to SIA buying into ANZ through Brierley after ANZ has bought the rest of Ansett. Brierley is part-owned by an investment arm of the Singaporean Government.
The retreat of News Corp is not its last word on Ansett's future. The company has often stressed that it wants to be out of Ansett so that it can focus on its core activities in media and entertainment.
But it has also become clear that Ansett is worth more than the A$500 million ($330 million) that SIA had agreed to pay. The Australian newspaper, which is owned by News Corp, says that Ansett will achieve its target of A$100 million profit for the year ending 30 June - so News Corp will doubtless raise its price.
Lachlan Murdoch, chairman of the News Australian arm, says that the corporation pulled back because the Singaporean airline and ANZ had not agreed on how to proceed.
The question now is whether SIA will be willing to re-open talks with ANZ after the latter's pre-emptive right raised the price for both of them.
Source: Airline Business
