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Richard Branson To Decide Today Re Sale Of Virgin Blue.

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Richard Branson To Decide Today Re Sale Of Virgin Blue.

 
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Old 4th Sep 2001, 08:26
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lame
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Post Richard Branson To Decide Today Re Sale Of Virgin Blue.

It is being reported that Richard Branson has to decide today whether or not to sell to Ansett?

He said both Airlines are/were intersted in purchasing Virgin Blue, but Ansett have made a formal offer, and they want a decision today. Also he said if he doesn't sell, Ansett are prepared to spent millions more to run him out of business.

Sounds familiar..........
 
Old 4th Sep 2001, 08:45
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After all the noise he and his manager made when IMU was swallowed by QF about it being anti competitive, wouldn't it all look a tad hypocritical?

Who would be left to whinge to the ACCC then?

ps does anyone else see the irony of Branson complaining to the Australian government about their competition laws? The guy doesen't live here, he is not a citizen, and doesn't vote here, he has no part in our governmental process yet he purports to exude power over it. GIVE ME A BREAK.

I wonder what would happen if an Aussie went to the UK and started a small airline, and thereafter started to criticise the way that the country runs it's self?.......They would be out of there before they could have time to wonder what they did wrong.

There's no way that RB could sell out to AN and stand with any credability.
 
Old 4th Sep 2001, 09:02
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You miss the point. The game is about ...money. Not morality.
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Old 4th Sep 2001, 09:09
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prunehead

Re your fourth para; it's already happened.

A now US citizen, formerly Australian....., none other than Rupert Murdoch. Fortress Whapping, UK papers, US papers etc.

I don't work for Virgin, but for my money if Branson has business interests here, he has a right to express an opinion and to me, it seems this is all he has done thus far.
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Old 4th Sep 2001, 09:20
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Just announced on CNBC that Branson has
rejected the Air NZ offer.
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Old 4th Sep 2001, 09:21
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And AN has millions spare to 'run him out of business'?.

If SQ gets a hold of AN they would help this process given their partnership with RB in Virgin?

Well we certainly live in interesting times.

Chuck.
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Old 4th Sep 2001, 09:23
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You can all eat your words as he has already said no to ANZ $250,000,000 offer. Just heard it on the news
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Old 4th Sep 2001, 09:24
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LAME, where the hell are Ansett going to get millions to run Virgin out of business? Ansett dont have millions, they need millions just to survive themselves ! Good laugh anyway. The latest from Courier Mail web site is

From AAP
04sep01
BRITISH entrepreneur Richard Branson says he has rejected an offer from Ansett to buy his Virgin Blue discount airline.

Sir Richard said he had rejected Ansett's offer, following strong support from a number of key politicans and the travelling public.
"Australians have benefited dramatically since Virgin Blue cut airfares in half over 12 months ago," he said.

"Although we could have walked away with a $250 million net profit on our investment, I felt it would be selling out both the Australian public and our staff."

Rather than sell the cut price carrier, Sir Richard said Virgin Blue would be investing "many millions" in expanding its fleet and establishing new routes.

He said that if Ansett believed that some regional routes in Australia were not viable, Virgin Blue would be happy to assist by offering seats on its own flights.

Sir Richard also said he had spoken at length today with Australian Competition and Consumer Commission head Allan Fels about Virgin Blue's complaints about Qantas' "predatory" practices.

He had also spoken to senior politicans from all major parties.

"I am confident that they appreciate the benefits of lower fares and more competition and will do something after the election to give the authorities more powers to act against the blatant anti-competitive behaviour that was used to drive out Compass, Impulse and hundreds of other small companies in other industries."

Glad he didn't do it, or we would be back to where we started, 2 airlines ripping off the public.
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Old 4th Sep 2001, 12:12
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Yes, I wondered that too when I heard it?

Apparently it was a very well thought out and executed publicity stunt........

It was in the media this morning, which is what I heard and posted here, that he had to decide today and was probably going to accept. Then of course he had a media conference and DID announce he had accepted this offer, then said "only joking".......

Full marks to whoever thought it all up....

 
Old 4th Sep 2001, 12:38
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He will sell!...believe it!...
 
Old 4th Sep 2001, 13:48
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Yes, as publicity stunts go, it was a very good one...........

 
Old 4th Sep 2001, 14:39
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Just watched Sir Richard tear up the Ansett check for $250 Million on TV. He probably thought it would bounce anyway.
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Old 4th Sep 2001, 15:30
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Windshear, look closely at the cheque, it was actually a Qantas one but his fingers didn't cover it all up!

Never mind the theatrics, it's all one big happy family already. I don't know the full reason behind all this "tomfoolery", but perhaps it makes AN/NZ look strong to the Kiwi government, I dunno.
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Old 4th Sep 2001, 23:10
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just in talks a.I'm sure if the price was right he would of gone.just holding out for a better deal.the guys a Knob!!
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Old 5th Sep 2001, 02:08
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I agree roo2...he would have sold if the money was right. Why was he grinning like a cheshire cat? Is he making money hand over fist now? Will he be in the future? Has he just guaranteed the future of his tinpot little startup?

No, I think the deal is much bigger than 250 big ones.

All AN staff should be dusting off their CV's and logbooks.
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Old 5th Sep 2001, 05:14
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Speaking of that, when is the big decision day on Ansett?

Supposed to be one day this week isn't it??
 
Old 5th Sep 2001, 07:36
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NATIONAL NEWS

WEDNESDAY, 05 SEPTEMBER 2001


N A T I O N A L N E W S S T O R Y

Air NZ rescue package falters
05 September 2001

By NICK VENTER and ROELAND VAN DEN BERGH

A decision on the future of Air New Zealand has slipped back
because of concern over the viability of the rescue package
being put together for the airline.

Urgent talks were taking place last night between Air New
Zealand and 25 per cent shareholder Singapore Airlines to find a
way of keeping alive the deal which would allow Singapore
Airlines to lift its stake from 25 per cent to 40 per cent.

Prime Minister Helen Clark said on Monday that the Government
hoped to announce some decisions before Finance Minister
Michael Cullen left for an Apec finance ministers meeting
tomorrow. But sources said it was unlikely there would be any
announcements today.

The Government and Singapore Airlines are understood to have
been close to agreement on the deal. But progress stalled
yesterday because of doubts over the sustainability of the
proposal. Qantas began due diligence on Air New Zealand last
week.

The deferral could fuel speculation that Air New Zealand needs a
bigger cash injection than previously flagged.

Air New Zealand is expected to announce losses of about $200
million next week, and has said it needs $1 billion to upgrade its
ailing subsidiary, Ansett Australia.

Company spokesman David Beatson said he could not comment
on what reasons the Government might have for not proceeding
with an announcement today.

The directors were "comfortable" with market predictions of a
$200 million loss, he said.

In the latest blow for Air New Zealand, British tycoon Sir Richard
Branson said yesterday he had decided against selling his Virgin
Blue airline to Ansett Australia.

Ansett, which has a 40 per cent market share, needs Virgin Blue
to compete against Qantas on equal terms. The cut-price airline
has secured a 5 per cent share of the Australian market in 12
months and is growing.

Sir Richard said Ansett was bleeding A$1 million (NZ$1.2 million) a
day.

One market commentator said Singapore Airlines might not be
interested in increasing its stake in Air New Zealand without
Virgin Blue as part of the equation.
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Old 5th Sep 2001, 08:42
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Wirraway,

Thank you for that, so it was supposed to be today.

Wonder what will happen now then????

Best regards,

"lame"
 
Old 5th Sep 2001, 09:14
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Lame

Your guess is as good as mine, what is
obvious, ANZ/SIA thought VB was in the
bag, hense the emergency meeting last night,
the worst case scenario would be if SIA
walks away from the deal, then all hell
would break loose, Air NZ shares have taken
another bath today, it seems the Clark govt
does not know which way to jump.

Wirraway
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Old 5th Sep 2001, 10:14
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Air N.Z. Slides as Investors Fret at Failure of Virgin Purchase

By Gavin Evans


Wellington, Sept. 5 (Bloomberg) -- Air New Zealand Ltd. shares plunged after Virgin Blue rejected its takeover offer, raising concern that the revival of unprofitable Australian unit Ansett Holdings Ltd. will take longer than investors had hoped.

The airline's Class B shares, which anyone can own, fell 6.6 percent to close at 99 NZ cents, while Class A shares, reserved for New Zealanders, fell 3.3 percent to 89 NZ cents. Air New Zealand offered A$250 million ($130 million) for Virgin Blue.

Air New Zealand, 25 percent owned by Singapore Airlines Ltd., wants to raise NZ$1 billion ($431 million) to upgrade Ansett's fleet, needed to compete with Richard Branson's Virgin Blue and Qantas Airways Ltd., Australia's No. 1 carrier.

"It's difficult to envisage when this company can return to profitability,'' leading investors to question whether the carrier will be able to raise the cash, said Simon Botherway, head of equities at Arcus Investment Management Ltd. in Auckland.

In addition, jet fuel prices, which added nearly NZ$286 million to the airline's first-half costs, have gained 16 percent the past six weeks.

The question here is WILL SIA pay NZ$1.31 per
share
when todays price is NZ$0.99
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