http://www.bloomberg.com/news/2011-05-26/branson-says-virgin-atlantic-has-choice-of-allies-as-deal-nears.htmlRichard Branson said he’s in talks with as many as three potential suitors for Virgin Atlantic Airways Ltd. and that he’s likely to reach a decision on a partnership sometime in the next quarter.
“Discussions with two or three parties are progressing,” Branson said last night in an interview in Chicago. “Within the next two or three months we should be clear on whether there’s an alliance we’re happy with or not.”
Branson, 60, has hired Deutsche Bank AG to assess Virgin Atlantic’s strategic options as rivals British Airways and American Airlines boost cooperation on key trans-Atlantic routes. The entrepreneur, who founded the U.K. carrier in 1984, said that while joining an alliance is essential, it’s not yet clear whether he will sell down his 51 percent stake.
“I’ve always made clear that I would still be very much involved,” Branson said. “My principal interest is in the alliance. If it means selling shares, we’ll consider that.”
Carriers may be dissuaded from taking a stake in Virgin Atlantic because of the strength of British Airways, said Chris Logan, an analyst at Echelon Research & Advisory in London. BA is allowed to coordinate fares and timetables with AMR Corp. (AMR)’s American after their alliance won antitrust approval last year.
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