Virgin Express & SN Brussels Merger Talks Resume
 

Information source:
http://quote.bloomberg.com/apps/news...JB5R0&refer=uk


Virgin Group Ltd. is in talks with an investment bank about a merger
between Virgin Express and SN Brussels Airlines 18 months after a
planned tie-up between the two Belgian carriers failed.

``Informal discussions are at a very early stage,'' Virgin Express,
which is majority owned by U.K. businessman Richard Branson's Virgin
Group, said in a statement from Brussels.

The bank ``recently'' approached Virgin Group and SN Air Holding, the
parent company of SN Brussels Airlines, to propose a merger between
the two units, according to Virgin Express.

``The door remains open, but everything will depend on the proposal,''
said Yves Panneels, a Virgin Express spokesman.

Earlier this month, Virgin Express reported a 96 percent drop in
second-quarter profit to 117,000 euros ($132,000) because of fare cuts
meant to lure customers that had been deterred from flying by the
weakness of the economy and the threat of terrorism.

``We are working in a difficult environment, but we are cutting costs
and have a strong customer base,'' said Panneels. ``We are not
actively seeking to merge.''

SN Brussels Airlines posted a second-quarter profit of 2.9 million
euros, the company's first profit since being set up as the successor
to bankrupt Sabena SA in January 2002.

Virgin Express said various intermediaries had proposed a renewed
effort to merge with SN Brussels Airlines since the earlier attempt
failed in February 2002.

``Since the merger talks ended last year, we have been contacted by
several financial organizations, including banks and consulting
groups, about a merger with SN Brussels Airlines,'' he said. ``There
has been no serious proposal put on the table.''

Yesterday, De Financieel-Economische Tijd reported that Virgin Express
was seeking to resume talks on a possible partnership with SN Brussels
Airlines, citing somebody the Belgian newspaper called a well-informed
person who asked for anonymity.


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