Arab investor pulls out of deal with Austrian Airlines

Saudi Arabia News.Net
Tuesday 13th May, 2008

Austrian Airlines and a Saudi investor have gone their separate ways after having talks about a stake in the airline.

The public holding OeIAG, which has a 42.75-percent stake in the Austrian flagship carrier, said the talks had collapsed because the investor, Mohamed Bin Issa Al Jaber, had imposed impossible conditions.

A deadline for Al Jaber to produce a bank guarantee ran out on Monday.

Al Jaber agreed in March to acquire a 20-percent stake in AUA but said this week he wanted to pull out of the deal, claiming that management drew a much more positive picture of the company's finances when negotiating the deal in March.

He said he did not want to pay more than what the shares were currently worth.

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