Schiphol's stock market debut in doubt
25 May 2005, AMSTERDAM — The Christian Democrat CDA has withdrawn its support for the stock market debut of Schiphol Airport, creating a parliamentary majority opposed to the floatation of the Netherlands' international air hub.
25 May 2005
AMSTERDAM — The Christian Democrat CDA has withdrawn its support for the stock market debut of Schiphol Airport, creating a parliamentary majority opposed to the floatation of the Netherlands' international air hub.
The opposition Labour PvdA said it was pleased with the CDA turnaround, while coalition government party Liberal VVD is still backing the floatation of the Amsterdam airport. The VVD wants the public to have a share in the airport.
However, both the CDA and PvdA fear shares could be bought by investors aiming for a quick profit, placing Schiphol's position at threat. Both parties claim negative economic consequences could develop.
The Dutch Cabinet wants to list Schiphol on the stock market to help the airport raise funds for further investment. A debate will be held in Parliament later on Wednesday about the impact of privatisation.
The CDA is now urging for Schiphol shares to be sold to long-term investors such as pension funds. And the party is not convinced of the necessity to sell shares, claiming Schiphol has a good credit rating to borrow money.
Initially sparked by a CDA proposal in 1995, it took almost a decade of talks before the Cabinet officially decided to privatise Schiphol Airport in July 2004.
But to assuage the concerns of the CDA and its coalition partner Democrats D66, government ministers reached a compromise in which the State would retain together with Amsterdam and Rotterdam a 51 percent share in the airport.
The floatation is planned to occur before 2007.
[Copyright Expatica News + ANP 2005]
Subject: Dutch news