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Saudi-based Laden Group offers to buy Pak Airlines shares

In a startling disclosure it was reported on Thursday that a Saudi Arabia-based group Bin Laden Associates has offered to acquire all shares of the fledgling state-owned Pakistan International Airlines and its subsidiary Pakistan International Airlines Investment Limited.

Bin Laden Associates -- a subsidiary of the Bin Laden Group -- has made the proposal to acquire shares in PIA and PIAIL, Islamabad-based daily, The News said on Thursday, quoting informed sources.

According to reports from Saudi Arabia, Osama bin Laden, wanted in connection with September 11 terrorist attacks in US cities, has already been disowned by the bin Laden family.

The Bin Laden Group is the largest group of Saudi Arabia having assets of billions of dollars, the newspaper said.

While PIA, which is owned by the Pakistan government is the sole airline carrier of Pakistan, PIAIL is an independent body that is involved in business other than aviation and owns hotels in New York and other international cities, it said.

National flag carrier PIA has 50 per cent shares in the PIAIL, while the remaining 50 per cent shares are owned by a Saudi prince, the newspaper said adding that the main asset of PIAIL is the Roosevelt Hotel in the heart of Manhattan, New York.

The Roosevelt Hotel was in news recently as the second summit meeting, now cancelled, between Prime Minister Atal Bihari Vajpayee and Pakistan President Pervez Musharraf was scheduled to be held there on September 25.

Bin Laden Associates made the offer to acquire shares in both PIA and PIAIL following the news that cash strapped PIA is intending to divest its shares in the hotels run by the PIAIL. The PIAIL owns four hotels located in New York, Paris, Dubai and Riyadh, The News said.

The group has also offered to procure other business from PIA if the management decides to divest its major departments, it said.

However, the PIA management has not taken any decision so far over the offer, it quoted an unnamed high official of PIA as saying.

"The proposal of Bin Laden is under consideration," the PIA official said. "In the new changed world scenario after the attacks in the US, it is expected that the management will not entertain the offer," he said.

According to the figures unveiled by the PIA management, the company suffered a loss of $20.74 million for the first half of this year.

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