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Interested parties in possible purchase of SAS withdrawn after EU rules

Tuesday, 20 November 2012
Companies from China and the some Arab countries had shown interest in buying SAS. After the company was rescued, it turns out that these companies have withdrawn their interest.

The sales process of the company is said to have run out of steam because EU rules only allow overseas owners to have minority stakes in European airlines. And SAS current owners have not been willing to take on additional minority shareholders.

The Swedish government's ambition for years now has been to sell SAS. According to Financial Markets Minister, Peter Norman, SAS has been more or less unsalable, but the company's new business plan makes a sale possible and easier.

Other authorities with closer knowledge in the industry such as airline business journalist, Richard Björnelid agree that SAS has become more attractive to a buyer. The problem is that the potential European buyers have their own worries to contend with. Low profitability of the industry and weak economic outlook makes the situation bad for a sale, consider Björnelid.

This is a bad time right now, according to Rickard Gustafson who feels that SAS should be given a couple of years to generate profit and maybe the economy would turn around towards growth.
Scancomark.com Team

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