The Swedish cabinet today decided to seek parliamentary approval to invest more money in the troubled SAS Group, operator of Scandinavian Airlines, but also signaled that it wants to eventually scale back its holdings in the company, dpa reported. SAS last week announced plans to raise money by selling shares in a rights issue. The announcement came as it reported a net loss of 2.9 billion kronor (393 million dollars) for 2009. Sweden is the largest stakeholder of SAS and has a 21.4-per-cent stake. It would buy 1.1 billion kronor, in line with its stake, if the issue is carried out and the government receives its go-ahead. The rights issue of 5 billion kronor has been backed by the governments of Norway, Sweden and Denmark - which own a combined 50- per-cent stake in the group - as well as by the Knut and Alice Wallenberg Foundation, which owns 7.6 per cent. Whether the rights issue will take place will be decided at an extraordinary general meeting April 7 and hinges on a deal with unions to save 500 million kronor, SAS has said. As part of the decision, the government said it has reviewed its ownership in SAS and when "opportune would reduce the state's ownership." Enterprise Minister Maud Olofsson said Stockholm had informed the other owners of its intent to reduce its stake in SAS in future, underlining that there were no plans to sell yet. "We have earlier said that we will reduce our (state) ownership in companies that are exposed to competition and where there are no reasons to keep ownership. SAS is such a company," Olofsson said.
