http://www.bloomberg.com/news/2011-04-06/branson-seeks-virgin-atlantic-partner-as-he-stays-major-holder.html
Branson Seeks Virgin Atlantic Partner as He Stays ‘Major’ Holder
Ryan Flinn and Mary Jane Credeur
U.K. billionaire Richard Branson is studying the sale of his 51 percent stake after hiring Deutsche Bank AG to review options. Photographer: Michael Nagle/Bloomberg
Richard Branson said his Virgin Atlantic Airways Ltd. needs a partner to compete with British Airways and that he plans to stay a “major shareholder” as his bankers review the airline’s future.
“It makes sense for Virgin Atlantic to have a partner as well,” the U.K. billionaire said today in an interview in San Francisco. “I will certainly still be extremely involved in the airline, whatever we decide to do, and I will still be a major shareholder. We are in discussions with various people and will see what comes out of it.”
Branson is studying the sale of his 51 percent stake after hiring Deutsche Bank AG to assess options, a person familiar with the matter has said. Virgin Atlantic isn’t in an airline alliance, while British Airways, a rival at London’s Heathrow airport, belongs to the Oneworld group.
Asked whether Crawley, England-based Virgin Atlantic has received any offers, Branson said: “We have received offers, but it’s too soon to say more.” He wouldn’t say what the offers were for or provide any other details.
Singapore Airlines owns 49 percent of Virgin Atlantic, which it bought in 1994. It belongs to the Star Alliance, which includes United Continental Holdings Inc. (UAL) and Deutsche Lufthansa AG. (LHA) Singapore Airlines said last month that it hadn’t made a decision about any “immediate divestment” of its stake.
Branson, 60, was in San Francisco to mark the opening of a new terminal for Virgin America Inc., the low-fare airline that started flying in 2007 in which he holds a minority stake.
Virgin Atlantic confirmed Deutsche Bank’s review in December and said then it had gotten a “number of lines of enquiry.” That study includes a sale of Branson’s stake, the person familiar with the issue said last month, speaking on condition of anonymity because the talks are private.
Joining an alliance such as Oneworld, Star or the SkyTeam group led by Delta Air Lines Inc. (DAL) and Air France-KLM (AF) would bolster Virgin Atlantic by letting fliers book seats on its planes as well as on those of its partners on routes it doesn’t serve. Oneworld’s members include AMR Corp. (AMR)’s American Airlines.
To contact the reporters on this story: Ryan Flinn in San Francisco at rflinn@bloomberg.net; Mary Jane Credeur in Atlanta at mcredeur@bloomberg.net
To contact the editor responsible for this story: Ed Dufner at edufner@bloomberg.net.
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