News Corp will need to quickly dispose of Ansett New Zealand lest it come under the scrutiny of local competition watchdog the Commerce Commission.
Under a deal struck last week, News Corp could end up owning 10.5 per cent of the other big player in the local domestic aviationmarket, Air New Zealand.
This is part-consideration for the $580 million sale of its 50 per cent holding in Ansett Australia to Air New Zealand.
News Corp, however, said yesterday that it expected to sell Ansett soon - hot on the heals of disposing of its 50 per cent stake in the airline operating leasing company Ansett Worldwide Aviation Services.
Broking sources in Australia expect the sale of Ansett New Zealand to be completed within a month.
The Business Herald has previously reported that News is in negotiations with Auckland merchant banking firm Clavell Capital, which is heading a local consortium looking to buy Ansett New Zealand.
A price of about $45 million is understood to have been agreed. The deal is also likely to include some link with Qantas.
The commission's chief investigator of business acquisitions, John Preston, confirmed its interest in what the implication might be for the local aviation market of News Corp's pending stake in Air New Zealand.
"We will have a look at it to see if there are any issues," he said.
While a stakeholder with less than 20 per cent was unlikely to have the ability to influence company policy, "that was not an absolute level," said Mr Preston.
"It depends on what rights attach to the shares, and other conditions might affect the influence a particular shareholder would have."
