It gets rid of uncertainty which means the market can work out whats real value - ok they took the loss from their investment made some time ago which is not great but maybe Air New Zealand made some of that loss back in influence and deals done between Virgin & AIZ in that time - ie code sharing and the like..
The uncertainty around the exposure to the upcoming Virgin CR has now been addressed from AIZ's standpoint - they are no-longer exposed so they have $232m in the hand rather than needing to fork out another $250m or so which in affect really equates to close to $500m AND they still hold a 6% share - I think it makes a lot of sense along with the settling of that civil suit - it gets rid of uncertainty and allows the market to focus instead on the Air New Zealand business. Now for a nice dividend
AIZ Price at posting:
$2.15 Sentiment: Buy Disclosure: Held
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