HC Deb 29 April 1970 vol 800 cc1243-4
31. Mr. Robert Howarth

asked the President of the Board of Trade if he will make a statement on the latest position with regard to the sale of British United Airways to the British Overseas Airways Corporation or other possible buyers.

Mr. Mason

Baring Brothers, who are acting for B.U.A., issued a prospectus on 23rd April and have asked for bids to be made within 28 days.

Mr. Howarth

Would my right hon. Friend say whether he regards all those who are reported as bidding for B.U.A. as being suitable and capable of creating a second force independent airline, as envisaged by the Edwards Committee?

Mr. Mason

I do not think that at this stage it would be right for me to single out one from the other. So far Caledonian, Laker Airways and Mr. Alan Bristow are interested in making bids.

Mr. Corfield

In view of the Minister's own expressed wish that a merger between Caledonian and B.U.A. may emerge and the fact that Baring Brothers' offer appears designed to discourage a merger between B.U.A. and Caledonian, will he bear that fact in mind if he is asked to approve a B.O.A.C. take-over?

Mr. Mason

Certainly I will. I feel —this is a personal view—that if B.U.A. merges with Caledonian it would be a sensible merger, but it is now a commercial transaction and it is up to B.U.A. to reach its own decision. If there are difficulties, the B.O.A.C. bid is on ice. It has not been rejected.