By Geoff Senscall
Between the lines
Air New Zealand is the one asset of Brierley Investments about which Sir Selwyn Cushing is said to be truly passionate.
As chairman of both companies, he also has a reputation for playing his cards close to his chest.
So close, it seems, that very few people know his master plan for trying to reconcile the competing interest of Air New Zealand and Singapore International Airlines (SIA) in Ansett Holdings.
Air New Zealand owns half of the Australian airline company. If SIA decides to buy the other half, it must first offer the stake to Air New Zealand. Quite how this will play out remains to be seen. But Sir Selwyn's actions to date suggest he believes the best scenario for Brierley shareholders would see SIA investing in Air New Zealand which, in turn, would take 100 per cent of Ansett.
As part of Sir Selwyn's manoeuvring, Brierley has spent $106 million to lift its stake in Air New Zealand. But the Singapore Government found out only after the event, according to people involved, which is surprising since it has a Brierley board seat and 5 per cent of the company. However, the Government does also own 54 per cent of SIA.
Now Brierley might spend another $50 million or so to rejig its holding so it could sell a 25 per cent stake in Air Zealand's unrestricted B shares to SIA - if SIA wants it.
Sir Selwyn would be a hero if he managed to offload Brierley's B holdings to SIA. He would be an even bigger hero at Air New Zealand if he helped it buy the other half of Ansett.
He has some leverage - but not a lot. Air New Zealand's pre-emptive rights over the Ansett stake are triggered only if SIA bids for it. The trouble is SIA is understood to be far keener on investing in Ansett than in Air New Zealand.
So Sir Selwyn runs the risk of overplaying his hand. SIA could walk away from an Ansett bid, thus failing to trigger the rights.
This would be a heavy blow for Brierley's credibility, especially after it is has bought more shares in an asset it has no certain strategy for exiting.
While Sir Selwyn crafts his moves, the Singapore Government has its own leverage and concerns - its investment in Brierley pales into insignificance compared with the $5 billion it has invested in SIA.
If it wants to turn up the heat over Ansett, the Government could lobby Tan Sri Quek Leng Chan, the Malaysian-based tycoon who controls Brierley's largest shareholder, Camerlin.
Tan Sri Quek is keen to move Brierley to Singapore. He therefore might find it advantageous to be on side with the local Government, foiling Sir Selwyn's apparent strategy.
Rarely has he played such high-stakes poker.
Sir Selwyn plays high stakes in Air NZ deal
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