Air NZ issues 78 million new shares to News Corp

Air New Zealand today said it had issued 78 million new shares to Nationwide News, a subsidiary of Australian media magnate Rupert Murdoch's News Corp.

The shares are equal to 2.6 per cent of the airline ordinary stock on issue.

The shares were issued as a final payment for Air NZ's purchase of failed Australian airline Ansett in 2000, the airline said in a statement to the NZX.

AMRO Craigs Equities' Matt Willis said the market had received the announcement reasonably positively, "although there's no mention of price at this stage so the dilutionary effect is unknown".

"News Corp's investment track record is reasonably sound so you could view that as an endorsement," he told NZPA today.

Air New Zealand said the new shares would rank equally with all other Air New Zealand ordinary shares on issue.

Air NZ shares were a cent lower at 41c in early afternoon trade.

- NZPA