A deal has been reached, SMB has sold his 50% stake to LH .
I am trying to find a link in English.
I am trying to find a link in English.
Bishop talks with Lufthansa on the future structure of bmi
FRANKFURT (Dow Jones)- Deutsche Lufthansa AG, Frankfurt, currently in talks with the British airline British Midland plc (bmi) and its principal shareholder, Michael Bishop on the future structure of the airline. Michael Bishop on 10 October 2008 exercised an option, Lufthansa will undertake, 50% plus one share in bmi to acquire (the airline) Lufthansa announced on Wednesday. This option was part of a shareholder agreement.
Lufthansa expects that this option is not before 12 January 2009. (It) Will take effect in January 2009, it was further (stated).
Originally posted by slinky09
While expected, I think this is still a disaster for VS. The two should have merged years ago IMO,
Originally posted by slinky09
The German airline signed an agreement with Sir Michael back in 1989 that if he ever wanted to sell his BMI stake, it would have first refusal.
The German airline signed an agreement with Sir Michael back in 1989 that if he ever wanted to sell his BMI stake, it would have first refusal.
Originally posted by slinky09
While expected, I think this is still a disaster for VS. The two should have merged years ago IMO, perhaps a case of two egos not thinking right? So, SMB gets £300m to retire with, perhaps not such a bad deal in the current climate, less that he may have got in a free auction a year ago. SRB gets no expansion at Heathrow where VS has stated its aim of focussing on.
It will be very interesting to see how LH manage BMI and what happens next:
- will they retain it as a separate brand and merge the back office
- will they rebrand it
- will they use BMI slots for a major transcontinental expansion from LHR
- does LH have the time to do anything major with all the other things it has on its hand (Brussels, Alitalia, Austrian etc.)
- will it allow United back into LHR as part of the Star Alliance
- will FlyBe be sold off
- how can BA react, LH and Air France-KLM are both now substantially larger
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