MAS eying Qantas equity participation

MAS eying Qantas equity participation

KUALA LUMPUR (Dow Jones): Malaysian Transport Minister Ling
Liong Sik Tuesday said the board of directors of Malaysian
Airline System Bhd. will discuss a possible equity participation
by Australian carrier Qantas Airways Ltd.

"Malaysian Airline's board will decide on this and you will
know pretty soon," Ling told reporters after speaking at
ministerial meeting, the national Bernama news agency reported.

Earlier Tuesday, the daily Business Times said Malaysian
Airline is believed to have sought a waiver from the 30 percent
limit on foreign shareholding in local companies.

Quoting an unnamed source, the report said the company has
asked the government for permission to raise foreign interest to
as high as 45 percent.

Malaysian Airline operates the national carrier, Malaysia
Airlines.

The report quoted the source as saying that "subject to
details to be worked out, it is likely to get (the waiver)."

Malaysian Airline officials were not immediately available for
comment.

The government gives exemptions from the 30 percent cap on
foreign shareholding in local companies where alliances are
deemed crucial to the development of an industry.

At present, foreign shareholders collectively own 16.57
percent of Malaysian Airline. The single largest foreign
shareholder is the Brunei Investment Agency, which has a 9.1
percent equity interest.

Last week, Business Times reported that Malaysian Airline was
talking with Australia's Qantas for the latter to possibly take a
stake in Malaysian Airline.