Philippine Airlines (PAL) chairman Lucio Tan plans to sell his majority stake in the struggling carrier, with Lufthansa or its Star Alliance partners United Airlines and Singapore Airlines (SIA) - which this week increased its stake in Air New Zealand (ANZ) - possible buyers. Tan owns 53.79% of PAL, and is linked to a group which controls 35.15%.
Philippines press reports, which say Tan wants $800 million for his stake, name Lufthansa as a potential buyer. The German carrier denies discussing a bid, but Lufthansa Technik is set to buy PAL's maintenance arm and Lufthansa Consulting advised the Asian carrier on strategy.
PAL went into receivership in June 1998, with debts of $2.2 billion, before adopting a rehabilitation plan. The government has a 4.26% stake, with the rest held by employees and unnamed investors. The involvement of United or SIA could be as part of a joint Star bid.
Meanwhile, SIA's NZ$285 million ($140 million) purchase of a 16.7% stake in ANZ from Brierley Investments takes its stake to 25%. The deal means SIA cannot invest in Virgin Australia - despite its 49% stake in Virgin Atlantic - for as long as Brierley, a major ANZ shareholder, retains a 5% holding. ANZ is buying Ansett Australia, so an SIA-Virgin Australia link would give it a foot in both camps.
Source: Flight International
