Paul Phelan/CAIRNS
A bid by Singapore Airlines (SIA) to acquire a 25% stake in Air New Zealand (ANZ) has been put on ice . SIA chief executive Dr Cheong Choong Keong went to New Zealand to complete the agreed purchase with ANZ owner Brierley Investments (BIL), only for the deal to falter .
The move would have seen SIA take a 17.1% holding as the first step in a plan to buy 25%, with share acquisitions from other investors taking the total worth of purchases to around NZ$400 million. Singapore-based BIL holds 42% of ANZ stock.
New Zealand news reports suggest the two parties met in Wellington for a formal signing, but BIL chairman and ANZ president Sir Selwyn Cushing sought to raise the terms of the deal. SIA refused to budge. With more of BIL's holdings in his sights Cheong had also lobbied the New Zealand Government to lift the current 25% cap on foreign airline ownership of ANZ to 40%. Prime Minister Dr Helen Clark does not rule out such a move, but says: "I wouldn't hold out hopes for 40%."
ANZ is seeking similar ownership concessions from the Australian Government as part of its proposed A$680 million purchase of News Corporation's 50% stake in Ansett Australia, which would give it full ownership. Cheong reportedly left New Zealand for Australia and had meetings with Ansett and the government over ANZ's swoop for the Australian carrier - possibly seeking to reactivate a failed SIA bid for the News Corp stake.
Source: Flight International
