Air Transport World

BA sells Qantas stake.(Brief Article)

British Airways sold its 18.25% stake in Qantas early last month for A$1.1 billion ($765.1 million). Reflecting the strength of the Australian airline, the 336 million shares offered by BA through underwriter Citigroup were taken up by a spread of 130 institutions and investor groups at A$3.28 a share. Temasek Holdings, which is partnered with Qantas in Singapore-based Jetstar Asia, declined to comment on speculation that it was a buyer.

BA secured a 25% stake in Qantas in 1993 for A$665 million and proceeded to develop a joint service agreement with the Australian carrier on "kangaroo route" services between Australia and Europe. This agreement, which provides for joint price-fixing and a sharing of profits and revenue, was renewed by Australian regulators for a limited period in late Aug. …

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