I hesitate to stick my finger in this cockie cage but there appears to be some amnesia creeping into this thread.
This share allocation is essentially the only way AirNZ can make their deferred payment of the balance of the purchase price delineated in the contract of sale.
What appears, however, to have slipped from the memory radar is the fact that the preferred News option was to sell the News 50% to SQ for a figure of AUD 500m which was over 100m less than the price AirNZ paid.
AirNZ vetoed the sale to SQ and the opportunity to re-capitalise Ansett and reduce the cost base and thereby ensuring the survival of Ansett and its role in the Star Alliance. They did this for two reasons.
1. The higher the price the better as far as AirNZ was concerned because Brierley Investments could not cope with any write down on their initial 50% held through their 36% holding in AirNZ.
2. Cushing thought he (read Brierley) could screw SQ into a minor role in AirNZ/Ansett rather than allow SQ to cut and run with Ansett. He ended up screwing SQ and and AirNZ and costing SQ and the staff of Ansett a lot of money. This will never, ever, be forgotten or forgiven by all involved.
It should be Selwyn Cushing kicking the can as he was chairman of both Brierley and AirNZ. Along with the two other common directors of both companies, they should be the bullseye in the dartboard that represents the subsequent mess.
Last edited by Traffic; 24th Feb 2004 at 17:17.