By GEOFF SENESCALL
Rupert Murdoch's News Ltd is understood to have agreed to sell Ansett New Zealand to a local consortium for $42 million.
This effectively leaves just due diligence to be completed before the sale goes through.
Given the complexity of the deal, however, it could take up to three months to finalise.
The firm at the centre of the purchase, as reported by the Business Herald late last year, is Auckland merchant banker Clavell Capital.
Its principal, David Belcher, was unavailable to comment yesterday on how the deal is being financed.
Clavell Capital has strong relationships with wealthy individuals, including The Warehouse's Stephen Tindall and Lion Nathan's Douglas Myers.
In addition, its New Zealand Fund has capital of about $30 million.
One of the investors thought to be linked with the local consortium, Dunedin businessman Sir Clifford Skeggs, declined to talk about his involvement.
Apart from financing, sealing a relationship with Qantas has been crucial to the deal.
The Australian flag carrier negotiated with News last year to buy Ansett NZ, which competes with Air New Zealand on domestic routes. But the two could not agree on price.
Australian analysts said News had wanted $80 million while Qantas was willing to pay only $45 million.
In the midst of these negotiations, Ansett became embroiled in a protracted staff lockout, which virtually grounded the airline for months and put its future in doubt.
This month, Qantas was said to be launching its own operation in New Zealand and to have registered six Boeing 737 aircraft here. This proved untrue.
An aviation analyst said it was unlikely Qantas would buy into any consortium.
Rather, it would secure the continuation of the existing arrangement where Qantas feeds its international tourists into Ansett's domestic flights and Ansett channels passengers into the Qantas Oneworld alliance.
One option to cement the relationship would be to give Qantas the management contract for the local operation, the analyst said.
This could see Ansett rebranded as Qantas in New Zealand.
Ansett has been operating in New Zealand since the late 1980s.
In the past decade it has reported only two profitable years.
The airline lost more than $20 million in the past two years. But it has since reduced its cost structure.
Meanwhile, News Ltd continues to negotiate to sell its half share in Ansett Australia to Air New Zealand. Price, however, remains a sticking point.
It is understood that Singapore Airlines is also still interested in buying the News stake.
Last year, Singapore tried to buy the holding but was trumped by Air New Zealand, which declined to waive its pre-emptive rights.
Singapore is now in talks with Virgin's Richard Branson about joining his startup Australian airline, which wants to break into Ansett's and Qantas' cosy duopoly.
Singapore - which owns a stake in Mr Branson's international airline Virgin Atlantic - has until February to decide whether it wants to be part of the Australian operation.
Ansett NZ sold to local consortium
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