Fresh talks in air for Brierley deal

By GEOFF SENESCALL

Brierley Investments chief executive Greg Terry is understood to have met Singapore Airlines chief Dr Cheong Choong Kong, keeping alive the possibility of a deal over Air New Zealand.

The reopening of dialogue comes about six months after a breakdown in discussions between the two parties about the proposed sale of part of Brierley's shareholding in the local carrier to Singapore.

Last month, Air New Zealand and Brierley chairman Sir Selwyn Cushing made overtures that indicated continuing interest in talking to Singapore Airlines.

Sir Selwyn, who had led the initial discussions between Brierley and Singapore, said yesterday he knew of nothing significant.

But he said that now the Brierley head office was based in the island state it was logical any discussions would be held there.

Nevertheless, it is understood the failed talks last year have led to tension between Sir Selwyn and Dr Cheong.

Singapore had wanted to buy the other half of Ansett Australia from News Corp. But Air New Zealand declined to waive its pre-emptive rights over that holding.

Last month, Air New Zealand bought the stake to take 100 per cent of Ansett.

Until now Mr Terry is believed to have taken a back seat in negotiations with Singapore. But he has a close relationship with Ansett's chief executive, Rod Eddington, who in turn is understood to be close to Singapore.

Time, however, is running out for Brierley to woo the Asian airline.

Singapore has to decide by the middle of this month whether it wants to join Sir Richard Branson's new airline in Australia. It confirmed this week that it was still in talks with Sir Richard's Virgin Atlantic.

Singapore is widely seen by aviation analysts as a natural fit for the Australasian airline. Furthermore, it gives Brierley a prime opportunity to sell down its 47 per cent holding.

Under existing regulations, Brierley can sell only its B shares in Air New Zealand to a foreign party. These shares account for about 40 per cent of Brierley's holding.