Air New Zealand to cut back stake in Virgin Blue
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Date: February 25, 2011
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Maddy Gerrard
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Air New Zealand is reducing its ownership stake in Virgin Blue because its holdings marginally exceed foreign-ownership limits. Last month Air New Zealand purchased a 14.99 per cent stake in Virgin Blue, never intending to launch a takeover bid but rather aiming to develop their scale and reach with the Tasman region. However according to Virgin Blue, Air New Zealand’s acquisition would take the total stake held by foreign entities to 49.78 per cent. Consequently Air New Zealand has pledged to reduce its holding “over a reason period of time” to ensure that foreign ownership of Virgin Blue remains between 49 per cent. Sir Richard Branson’s Virgin Group is the biggest shareholder in Virgin Blue, with a stake of almost a 26 per cent.
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