Investors that are not agree to the "tie down" sell off their shares...

Clearly, this "tie down" is widely perceived to be "saving MAS ass".

KUALA LUMPUR: OSK Research rates all its aviation counters as BUYs with AirAsia as its top pick (FV: RM4.34) and MAS as a trading BUY (FV: RM2.45).

“We reaffirm our overweight stance on the Malaysian aviation play,” it said on Wednesday, Aug 10.

On Tuesday, AirAsia and MAS announced a comprehensive collaboration framework and shares swap agreement (including the issuance of warrants) between its respective major shareholders; Tune Air and Khazanah.

The shares swap and warrants issuance facilitates in aligning the interest of both the majority and common shareholders for the collaboration between the two carriers.

“While synergistic benefits could be seen over the longer term on the collaboration framework; AirAsia and its feeder traffic, long haul sister carrier, AirAsia X are seen as winners of this collaboration over the immediate term.

“The low cost carrier (LCC) benefits on immediate route accessibility, yield upside, and its dominance as Malaysia’s only LCC (as Firefly phases out of the LCC segment),” it said.

Actually the share swap is between the major shareholders of MAS and Khazanah. For the minority shareholders there arent any effect at all besides maybe concerns that Tan Sri Tony now has to split his time managing two airlines instead of one.

Well, Since AA is doing well , i believe they will stick to the orignal board members. Why fix something which is not broken.

In other hand, It is a good thing that MAS had  change their management team or else they are going nowhere. This will definitley bring up the confidence level of the investors.

i believe this so called " partnership" might do well in long term for both companies.

my 2 cents

The deal is not a merger.

Just share swap between Airasia & MAS shareholder only.
It doesn't affect business wise nor any dilution.

Just there is another deal that free warrant will be issued.

Doesn't seem that way to me.

I agree. Using rakyat's MONEY but not their opinion doesn't make Khazanah's voice part of the rakyat in any way.

I think TF is doing a bit of national service by "sitting" in the MAS Board (whether contributing or not) and getting the strings to create more wealth for Air Asia. The tie-ups in Japan and the booming economy in Indonesia will boost Air Asia revenue and profitability tremendously and with the gomen lobbying for more landing rights for them. Giving a small part to Khazanah is a small thing taking into consideration the expected and potential returns over the longer term.

Dont think that his interest in Air Asia is that low; you will never know their actual shareholding held under foreign nominees.

The government-linked funds have perhaps pushed up AA to faciliate the deal. They have all the details but the public does not. Most airline shares all the world over are not performing.

U mean the government is trying to make TF richer, I think not. They are just trying the last effort to save MAS. If u can make yourself a millionaire, will you make others a millionaire also?

Really cannot understand all this sandiwara. Why AA want to buy into MAS since it always making lost unless you want to telan this company, right? But MAS will exist as long as BN still rule at all cost.

me can see uptrend today for Air Asia

Anyway I look at it, AAsia is gone case.

Hi all,
Waiting for AA shares to slide so that can go in and buy .....

But now, cannot liaw since it increased so much....

Felt abit weird that given the current environment, AA shares can still go up at a fast rate (not a slow gradual increase) ..... it is all part of an elaborate window dressing?

i believe AA is a good investment now. this could be the good reason for it:
http://research.cimb.com/index.php?ch=5013...c=39828&bb=file

Hi - why do you think AirAsia will slide until RM2.50?

Also, I would like to ask another question. Noticed in TheStar newspaper that there is a huge trading volume for AirAsia but then the price movement is quite small. Why is it so? Is it because there are huge selling offset by huge buying?

Thanks in advance for the answer.

Look like it had lost whatever gain made on friday. Will EPF continue to help to support the price?
I am bearish on AIRASIA
TP: 3.00 and slide to 2.50

This shares is heading back to below RM3 soon. Those that goes in by thinking not to miss the boat this time must be crying now and believe they will need to hold this shares for a long long time.