VIRGIN Blue is believed to be in talks with a Middle East airline about securing a cornerstone investor as it looks to raise cash to recapitalise the business.
The key to getting any deal across the line is British billionaire Richard Branson. As a 25.5 per cent shareholder of Virgin Blue, he calls the shots.
The talk is, Branson needs to be convinced of a deal. He can either sell out to a cornerstone investor or stay in and agree to dilute his shareholding by not taking up his entitlement in a rights issue.
In the past, Branson has not shown any inclination to increase his stake despite the shares falling as low as 17c, nor has he shown any indication of being a willing seller in the recent past.