COMPETITION WATCHDOG SET TO REJECT PURCHASE OF AIR NZ BY QANTAS.

AsiaPulse News, April, 2003

SYDNEY, April 10 Asia Pulse - The New Zealand competition watchdog the Commerce Commission said today it would probably reject a proposal by Qantas Airways (ASX:QAN) to buy 22.5 per cent of Air New Zealand (ASX:AIZ) for $NZ550 million.

"On the basis of the information currently available, the commission's preliminary view is that it cannot be satisfied that the public benefits resulting from the proposed alliance would outweigh the detriment," it said.

"The commission would therefore decline to authorise the applications if its preliminary conclusions were confirmed."

The Commerce Commission said the proposal would be likely to result in a substantial lessening of competition.

The NZ Commerce Commission said the proposed alliance would...