Etihad stake may be cut in half as Virgin share raising wraps up this week

Control of Virgin Airlines is headed for Asia amid speculation Etihad may see its holding in the Australian carrier halved. Etihad is the largest shareholder in Virgin with a 21.83% stake. However it has refused persistently to clarify whether it is to take up its entitlement to shares in Virgin's A$852m raising, which closes Wednesday. Virgin is issuing shares at 21c each, and with its shares trading little moved from this price, the underwriters may be left with shares to take up as investors baulk at committing fresh funds to the company which has lost more than $500m over the past 3 years. Additionally, the latest raising will push to more than $2b the company has raised through the share market, with the company's market worth standing at around the amount it is seeking to raise in the latest issue. <br/>