Airline chooses crucial players

By GEOFF SENESCALL

Air New Zealand is understood to have appointed Macquarie New Zealand and JB Were and Son to handle a hotly contested $285 million rights issue.

The funds will be raised to help finance the $A680 million ($820 million) purchase of the remaining 50 per cent shareholding in Ansett Australia.

Analysts expect it will be a one-for-three issue at about 150c a share. However, details are not believed to have been finalised.

The timing of any issue is also up in the air as Air New Zealand has yet to gain regulatory consent to buy the rest of Ansett from News Corp.

However, at a shareholders' meeting in Auckland this week, Air New Zealand chairman Sir Selwyn Cushing indicated that the company hoped to gain the required approvals by the end of the month.

Air New Zealand might also choose to wait until its main shareholder, Brierley Investments, decides what it will do with its stake.

Brierley has indicated that it is close to finalising a deal to sell a 25 per cent shareholding in Air New Zealand to Singapore Airlines.

It is not clear what Singapore's attitude to a rights issue might be.

Six broking firms pitched for the issue. It was only after last-minute jockeying that JB Were and Macquarie were picked.

Macquarie assisted Air New Zealand in its purchase of the News stake in Ansett. This meant it was a favourite to get the rights issue.

While it does not have a broking presence in New Zealand, Macquarie has a close relationship with the private client broking firm Forsyth Barr.

JB Were has recently done work for Brierley on Air New Zealand. Last year it bought shares in Air New Zealand for Brierley to top up its holding from 42 per cent to 47 per cent.