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Business News of Monday, 5 June 2006

Source: The Reporter (Addis Ababa)

GIA - Ethiopian Airline Deal On the Rocks

Ethiopian Airlines has been unable to sign the final acquisition agreement with the Ghana International Airline (GIA).

The management of Ethiopian last year proposed to buy 24 percent of the shares in GIA for ten million dollars. In a written statement sent to The Reporter, Ethiopian said negotiations with GIA had been finalized in March 2006. However, it said, the final agreement could not be signed due to some internal problems within GIA.

Ethiopian further said it was closely following up developments within GIA adding it will make final decision in the very near future. GIA started negotiations with Ethiopian after it went bankrupt. Ethiopian wanted to acquire GIA and to establish a regional hub in west Africa.

A senior official with Ethiopian told The Reporter that other international airliners have also shown interest in buying GIA.

"These airlines presented their proposals to GIA after we made an agreement," the official said. The official declined to disclose the names of the airlines.

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