Originally Posted by
Speedbird218
Originally Posted by
kanderson1965
If that is the case what would be the point of investing to such an extent? I expect this will be the outcome, no one will want a 49% non controlling share, too much risk with too little control. The alternative, a larger number of minority shareholders with shallow pockets and potentially less interest in the business due to lower stake.
Best thing to do is sell the 49 % back to SRB, as he is so passionate about "his" airline, and let him sink or swim.
SQ have had a non controlling interest for a number of years. You might be better to ask the SQ board on the reason why they invested in VS.
Branson owns 51% Unless he decides to sell enough shares to give someone else a controlling interest...he will be the majority shareholder.
Those are the facts.
I am not disputing the facts, however I personally would not find holding such a large share in a company without having any control of it an attractive investment.
We can only speculate as you say as to why SQ found it attractive at the time but obviously it is no longer attractive to them, and in the present economic climate, probably anyone else.
Maybe the Chinese may want to take a punt, but would any established airline want to? I can't really see what they would get for the money, they couldn't even liquidate the slots without a controlling interest.