Air New Zealand (Air NZ), Etihad Airways, and Singapore Airlines have increased their stakes in Virgin Australia by 4%. The news comes amid retail shareholders' low interest in Virgin's capital raising efforts, according to Business Spectator.
Virgin's $351.5-million capital raising was the subject of a word war between Qantas chief Alan Joyce and Virgin boss John Borghetti. Joyce feared the raising was part of a takeover move of Qantas' main rival, the report detailed.
Joyce had tried unsuccessfully to get the government to block the said capital raising. The Australian Shareholders Association was unable to alter the deal through a complaint filed to the Takeovers Panel, the report said.
The raising proceeded as planned, but Virgin's retail shareholders only took up a fourth of their entitlements. This prompted underwriters Air NZ, Etihad, and Singapore to raise their combined stake in the troubled Australian airline to 67%. The three big airlines previously held a 63% stake in Virgin, Business Spectator reported.
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