wirgin blew
16th Mar 2005, 21:01
Patrick close to grabbing control of Virgin Blue
Anthony Marx - Herald Sun
17mar05
PATRICK Corporation is tantalisingly close to its goal of seizing control of Virgin Blue airlines.
The transport giant revealed it held a 49.03 per cent stake in the budget carrier yesterday morning but there was no announcement about how many additional shares had been acquired by the close of business.
Patrick chief executive Chris Corrigan has said that if he did not achieve full control of Virgin Blue, he would be happy to own more than 50 per cent to give him a greater say in how it is run.
It appears to be only a matter of time before Patrick passes the 50 per cent mark, at which point it will be required to keep its $1.90 a share offer open for another two weeks.
Patrick announced late Tuesday that it was extending its hostile $1.1 billion takeover bid by a week, with the offer now closing next Tuesday night.
Virgin Blue shares gained 1c yesterday to finish at $1.91, while Patrick added 6c to $6.34.
Virgin Blue continues to advise investors to reject the $1.90 offer as too low. Virgin Group head Richard Branson has also vowed not to sell his 26 per cent holding at $1.90.
Once Patrick has majority share ownership, it is expected to put in place a raft of management changes, including the possible ousting of chief executive Brett Godfrey.
Mr Corrigan wants Virgin Blue to adapt its strategy to take on rival Jetstar, operated by Qantas.
He has also said that the rapid fall in airfares since Jetstar began operations needed to stop.
So far the offer has attracted 3.63 per cent of the shares in the airline.
Independent expert Grant Samuel & Associates has assessed the value of Virgin Blue shares at between $2.43 and $2.90 each.
Anthony Marx - Herald Sun
17mar05
PATRICK Corporation is tantalisingly close to its goal of seizing control of Virgin Blue airlines.
The transport giant revealed it held a 49.03 per cent stake in the budget carrier yesterday morning but there was no announcement about how many additional shares had been acquired by the close of business.
Patrick chief executive Chris Corrigan has said that if he did not achieve full control of Virgin Blue, he would be happy to own more than 50 per cent to give him a greater say in how it is run.
It appears to be only a matter of time before Patrick passes the 50 per cent mark, at which point it will be required to keep its $1.90 a share offer open for another two weeks.
Patrick announced late Tuesday that it was extending its hostile $1.1 billion takeover bid by a week, with the offer now closing next Tuesday night.
Virgin Blue shares gained 1c yesterday to finish at $1.91, while Patrick added 6c to $6.34.
Virgin Blue continues to advise investors to reject the $1.90 offer as too low. Virgin Group head Richard Branson has also vowed not to sell his 26 per cent holding at $1.90.
Once Patrick has majority share ownership, it is expected to put in place a raft of management changes, including the possible ousting of chief executive Brett Godfrey.
Mr Corrigan wants Virgin Blue to adapt its strategy to take on rival Jetstar, operated by Qantas.
He has also said that the rapid fall in airfares since Jetstar began operations needed to stop.
So far the offer has attracted 3.63 per cent of the shares in the airline.
Independent expert Grant Samuel & Associates has assessed the value of Virgin Blue shares at between $2.43 and $2.90 each.