YOWza From Canada, joined Jul 2005, 4781 posts, RR: 17 Posted (5 years 10 months 2 weeks 5 days 9 hours ago) and read 4722 times:
Just saw this covered on a BBC Business segment. Analysts are saying that it is likely to sell for about $2B (US) so SQ will have made $0.5B over 8 years of involvement with VS.
So where does this leave things? Who is going to come in and buy the 49% dare I say a Gulf carrier?
Additionally this is likely to trigger other airline acquisitions, so IB and AZ might be dealt with sooner rather than later.
Kiwiandrew From New Zealand, joined Jun 2005, 8435 posts, RR: 14 Reply 2, posted (5 years 10 months 2 weeks 5 days 9 hours ago) and read 4656 times:
Quoting YOWza (Thread starter): So where does this leave things? Who is going to come in and buy the 49% dare I say a Gulf carrier?
perhaps if SQ sell their stake
( that is by no means certain according to this article http://www.smh.com.au/news/business/...sale/2007/07/09/1183833400931.html ) LH which has a high level of fleet commonality with VS current fleet and a stake in BD might be interested in trying to bring the two together ( probably over both SMB and SRB's dead bodies ).
Of course if SQ sell their stake this might also mean that DJ can use the Virgin name on their proposed Australia-US flights instead of having to create a separate brand to keep SQ happy .
Moderation in all things ... including moderation ;-)
N328KF From United States of America, joined May 2004, 6222 posts, RR: 3 Reply 3, posted (5 years 10 months 2 weeks 5 days 9 hours ago) and read 4656 times:
Quoting YOWza (Thread starter): So where does this leave things? Who is going to come in and buy the 49% dare I say a Gulf carrier?
I'm sure right-of-first-refusal lies with Virgin Group.
When they call the roll in the Senate, the Senators do not know whether to answer 'Present' or 'Not guilty.' T.Roosevelt
Ikramerica From United States of America, joined May 2005, 21029 posts, RR: 60 Reply 4, posted (5 years 10 months 2 weeks 5 days 9 hours ago) and read 4524 times:
Bill142 From Australia, joined Aug 2004, 8320 posts, RR: 9 Reply 5, posted (5 years 10 months 2 weeks 5 days 7 hours ago) and read 4273 times:
Quoting ANstar (Reply 1): Perhaps this is also why Virgin Blue were able to short list names for the new airline with the name Virgin in them?
Perhaps. Documents lodged with the IASC suggest the airline, or at least the operating company, will be called Virgin Blue International Airlines. It does reference the naming competition.
AirbusA6 From United Kingdom, joined Apr 2005, 1906 posts, RR: 0 Reply 6, posted (5 years 10 months 2 weeks 5 days 5 hours ago) and read 4089 times:
If Virgin Media (a major UK telecom/cable tv company in which SRB has a stake) is take over by private equity (which seems likely) SRB will have some more funds to buy back part or all of the stake...
it's the bus to stansted (now renamed national express a4 to ruin my username)
Carledwards From United Kingdom, joined May 2004, 259 posts, RR: 0 Reply 7, posted (5 years 10 months 2 weeks 5 days 5 hours ago) and read 4013 times:
Quoting AirbusA6 (Reply 6): If Virgin Media (a major UK telecom/cable tv company in which SRB has a stake) is take over by private equity (which seems likely) SRB will have some more funds to buy back part or all of the stake...
very true although, I do not recall Branson ever buying something like this back?
I think it is very unlikely he would in this case too?
Bill142 From Australia, joined Aug 2004, 8320 posts, RR: 9 Reply 8, posted (5 years 10 months 2 weeks 5 days 4 hours ago) and read 3982 times:
Quoting Carledwards (Reply 7): very true although, I do not recall Branson ever buying something like this back?
I think it is very unlikely he would in this case too?
He did everything he could to try gain control of Virgin Blue from Patrick Corp.
Gordonsmall From UK - Scotland, joined Jun 2001, 1995 posts, RR: 24 Reply 9, posted (5 years 10 months 2 weeks 5 days 4 hours ago) and read 3942 times:
Quoting Carledwards (Reply 7): very true although, I do not recall Branson ever buying something like this back?
Branson floated the Vrigin group (well, parts of it anyway, though not the airline) on the stock market in the late 80's/early 90's and then promptly bought it all back when the stock market crashed.
Statistically, people who have had the most birthdays tend to live the longest.
Zkpilot From New Zealand, joined Mar 2006, 4739 posts, RR: 10 Reply 10, posted (5 years 10 months 2 weeks 5 days 4 hours ago) and read 3942 times:
Could this mean that with SQ no longer blocking VS, we could see VS join *A possibly with a tie-up with BD?
That would be a very interesting proposition... In Australia it would mean that *A would finally get a carrier after AN collapsed 2001. Perhaps NZ could be interested in some equity involvement... VS and NZ are quite similar carriers in many ways and are at the opposite ends of the world from each other...could be a good partnership especially with DJ in Australia...
Carledwards From United Kingdom, joined May 2004, 259 posts, RR: 0 Reply 11, posted (5 years 10 months 2 weeks 5 days 4 hours ago) and read 3811 times:
Quoting Zkpilot (Reply 10): VS and NZ are quite similar carriers in many ways and are at the opposite ends of the world from each other...could be a good partnership especially with DJ in Australia...
yes, but the new Virgin Blue trans-pacific flights I were under the impression based on a low cost, 'Oasis Hong Kong' business model? So these would in thoery be competing with Air New Zealand.
Quoting Gordonsmall (Reply 9): Branson floated the Vrigin group (well, parts of it anyway, though not the airline) on the stock market in the late 80's/early 90's and then promptly bought it all back when the stock market crashed.
this is a very 'one-off' example though. I would be very surprised if Branson brought these shares back.
N328KF From United States of America, joined May 2004, 6222 posts, RR: 3 Reply 12, posted (5 years 10 months 2 weeks 5 days 3 hours ago) and read 3792 times:
Quoting Carledwards (Reply 7): very true although, I do not recall Branson ever buying something like this back?
I think it is very unlikely he would in this case too?
Quoting Bill142 (Reply 8): He did everything he could to try gain control of Virgin Blue from Patrick Corp.
He also tried on numerous occasions to buy back Virgin Records. He had sold it in the early 1990s to save Virgin Atlantic. Later, when he was on a more stable footing, he wanted the record company back but EMI wouldn't sell.
When they call the roll in the Senate, the Senators do not know whether to answer 'Present' or 'Not guilty.' T.Roosevelt
AirbusA6 From United Kingdom, joined Apr 2005, 1906 posts, RR: 0 Reply 14, posted (5 years 10 months 2 weeks 5 days 2 hours ago) and read 3621 times:
Quoting Carledwards (Reply 7): Quoting AirbusA6 (Reply 6):
If Virgin Media (a major UK telecom/cable tv company in which SRB has a stake) is take over by private equity (which seems likely) SRB will have some more funds to buy back part or all of the stake...
very true although, I do not recall Branson ever buying something like this back?
I think it is very unlikely he would in this case too?
I believe a Japanese company (not an airline) had a stake is VS back in the late 80s(?) which SRB bought back well before the subsequent sale of a larger stake to SQ. SRB does tend to but and sell stakes in his companies, depending on
a) What other investments he fancies doing instead, and
b) Whether he need some short term cash!
it's the bus to stansted (now renamed national express a4 to ruin my username)
SunriseValley From Canada, joined Jul 2004, 3952 posts, RR: 4 Reply 15, posted (5 years 10 months 2 weeks 5 days 1 hour ago) and read 3432 times:
Quoting Kiwiandrew (Reply 2): probably over both SMB and SRB's dead bodies Wink ).
These two good ole' boys need to put up or shut up !
Quoting Zkpilot (Reply 10): Perhaps NZ could be interested in some equity involvement... VS and NZ are quite similar carriers in many ways
I can see no reason for the NZ major shareholder to get involved in an airline that is of no strategic interest to N.Z. No doubt there are private equity players who have doodled on the back of an envelope how such a combination could perhaps work. My suspicion is that the present N.Z. Govt.for ideological reasons would insist on all sorts of conditions that would make such a deal very difficult to do
Quoting Bill142 (Reply 8): He did everything he could to try gain control of Virgin Blue from Patrick Corp.
Except put up enough money to make the deal of interest to Patrick ! Branson is what I would describe as a 10c millionaire, well set with paper assets but with little liquidity.
LHRBlueSkies From United Kingdom, joined Jan 2007, 493 posts, RR: 2 Reply 17, posted (5 years 10 months 2 weeks 3 days 22 hours ago) and read 1840 times:
I would be very surprised if SQ sell their VS stake, but maybe they need the cash for buying into more Chinese airlines?
BA and the TPG (?) group will go for IB. AF/Kl might go for AZ, but don't count Air One out yet - whoever gets AZ will have one heck of a job!
BD/VS tie-up...unlikely now Bishop can fly long-haul ex-LHR....but you never know...
flying is the safest form of transport - until humans get involved!
Kiwiandrew From New Zealand, joined Jun 2005, 8435 posts, RR: 14 Reply 19, posted (5 years 10 months 2 weeks 3 days 9 hours ago) and read 1515 times:
Quoting JoFMO (Reply 18): There is an interesting article in the Telegraph which spins the theorie of LH bying out SQ and forming a BMI/VS/LH thing.
bloody Telegraph ,didnt even have the decency to quote my post as a source for this story
Quoting Kiwiandrew (Reply 2): perhaps if SQ sell their stake
( that is by no means certain according to this article http://www.smh.com.au/news/business/...sale/2007/07/09/1183833400931.html ) LH which has a high level of fleet commonality with VS current fleet and a stake in BD might be interested in trying to bring the two together ( probably over both SMB and SRB's dead bodies ).
Moderation in all things ... including moderation ;-)
Sounds logical. And I wonder how the VS A380 orders play into this. Would that factor into the deal (if SQ were to take them off VS's hands)?
As I understand it, under the terms of the 1999 agreement with SIA, Branson has NO RIGHT of first refusal over any sale. So it's really dependent on who can give SIA the best offer for that 49% stake.
I really doubt AF/KL will buy AZ. IIRC they said they are not even considering buying AZ. IMHO it would be a very bad idea anyway. They'd be better off buying the VS stake IMHO.
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