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yowza
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SQ To Sell Stake In VS

Mon Jul 09, 2007 2:41 pm

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.

YOWza
 
anstar
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RE: SQ To Sell Stake In VS

Mon Jul 09, 2007 2:48 pm

Perhaps this is also why Virgin Blue were able to short list names for the new airline with the name Virgin in them?
 
kiwiandrew

RE: SQ To Sell Stake In VS

Mon Jul 09, 2007 2:52 pm

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  Wink ).

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 .
 
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N328KF
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RE: SQ To Sell Stake In VS

Mon Jul 09, 2007 2:53 pm

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.' -Theodore Roosevelt
 
ikramerica
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RE: SQ To Sell Stake In VS

Mon Jul 09, 2007 3:27 pm

Quoting N328KF (Reply 3):
I'm sure right-of-first-refusal lies with Virgin Group.

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)?
Of all the things to worry about... the Wookie has no pants.
 
bill142
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RE: SQ To Sell Stake In VS

Mon Jul 09, 2007 5:21 pm

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
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RE: SQ To Sell Stake In VS

Mon Jul 09, 2007 7:02 pm

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 a6 to ruin my username)
 
carledwards
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RE: SQ To Sell Stake In VS

Mon Jul 09, 2007 7:27 pm

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?
Directoria
 
bill142
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RE: SQ To Sell Stake In VS

Mon Jul 09, 2007 7:34 pm

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
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RE: SQ To Sell Stake In VS

Mon Jul 09, 2007 7:46 pm

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.
 
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Zkpilot
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RE: SQ To Sell Stake In VS

Mon Jul 09, 2007 7:47 pm

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...  Smile
56 types. 38 countries. 24 airlines.
 
carledwards
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RE: SQ To Sell Stake In VS

Mon Jul 09, 2007 8:28 pm

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.
Directoria
 
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N328KF
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RE: SQ To Sell Stake In VS

Mon Jul 09, 2007 8:32 pm

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.' -Theodore Roosevelt
 
UAL777UK
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RE: SQ To Sell Stake In VS

Mon Jul 09, 2007 8:34 pm

It does seem all very vaque at the moment, but you know what they say..."Theres no smoke without fire".

http://www.reuters.com/article/topNews/idUKL0955460420070709?rpc=44
 
AirbusA6
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RE: SQ To Sell Stake In VS

Mon Jul 09, 2007 9:44 pm

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 a6 to ruin my username)
 
sunrisevalley
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RE: SQ To Sell Stake In VS

Mon Jul 09, 2007 11:23 pm

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.
 
kappel
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RE: SQ To Sell Stake In VS

Wed Jul 11, 2007 1:39 am

Well, AF/KL stated (IIRC it was Spinetta himself) that they were looking at airline aquisitions not so long ago. Perhaps they will join the bidding.
L1011,733,734,73G,738,743,744,752,763,772,77W,DC855,DC863,DC930,DC950,MD11,MD88,306,319,320,321,343,346,ARJ85,CR7,E195
 
LHRBlueSkies
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RE: SQ To Sell Stake In VS

Wed Jul 11, 2007 1:45 am

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!
 
JoFMO
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RE: SQ To Sell Stake In VS

Wed Jul 11, 2007 10:39 am

There is an interesting article in the Telegraph which spins the theorie of LH bying out SQ and forming a BMI/VS/LH thing.

http://www.telegraph.co.uk/money/mai...=/money/2007/07/10/cnvirgin110.xml
 
kiwiandrew

RE: SQ To Sell Stake In VS

Wed Jul 11, 2007 3:03 pm

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  Wink

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 ).
 
SQ772
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Joined: Wed Nov 07, 2001 5:16 pm

RE: SQ To Sell Stake In VS

Wed Jul 11, 2007 3:52 pm

Quoting N328KF (Reply 3):
Quoting N328KF (Reply 3):
I'm sure right-of-first-refusal lies with Virgin Group.

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.
There's always a better way to fly...
 
kappel
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RE: SQ To Sell Stake In VS

Wed Jul 11, 2007 4:04 pm

Quoting LHRBlueSkies (Reply 17):
AF/Kl might go for AZ

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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