Air Transport World

Patrick Corp. muscles in on Virgin Blue.(Financial Results, New Deals, And Reports From Every Corner Of The Globe)(Brief Article)

Virgin Group's 2002 invitation to Patrick Corp. to take a half-share in Virgin Blue (subsequently reduced to 45.4%) has backfired as Patrick, which operates ports, rail interests and freight, is trying to muscle out its erstwhile partner for total control of the Australian low-cost carrier. To date, Virgin Group has rejected as insufficient Patrick's A$1.1 billion ($849.7 million) takeover offer, saying it "hugely undervalues" the airline. Virgin Group currently holds 25%. Under the bid, Virgin Blue would become a wholly owned subsidiary of Patrick, a listed company.

The late Jan. bid came as Virgin Blue was close to securing a joint-venture deal to launch operations into the mainland China market from Macau and is negotiating to establish a Pacific-based carrier out of Samoa. …

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