More Products


Important Information


Company Information



Lufthansa considering BMI buy

German airline Lufthansa is said to be discussing the possibility of acquiring a majority stake in British Midland (BMI). Mergermarket has been informed that the Swiss bank UBS has been asked to advise the German airline on the possible acquisition.

 

Currently, Lufthansa holds a 30 per cent minus one share in BMI. Lufthansa has been known to consult with UBS on projects and is thought to be considering a total takeover of BMI.

 

Lufthansa and UBS had been working on a plan to place a bid on Italy's flagship carrier Alitalia, but abandoned their plans to do so today.

 

A 50 per cent stake in BMI is currently held by Sir Michael Bishop. Sir Bishop has already extended to options to sell his stake in the airline to Lufthansa.

 

Wolfgang Mayrhuber, the chairman of the German airline confirmed in August that the airline planned to purchase two carriers in the future and was considering BMI as an option for one of those purchases.

 

A 20 per cent stake in BMI is owned by the Scandinavian airline SAS. Mats Jansson, the airline's chief executive, revealed that SAS planned to sell the stake in 2008.

 

BMI has become a particularly appealing buy because of the options opening up to the airline through the signing of the Open Skies pact between Europe and the United States. It's an appeal that hasn't been lost to other prospective buyers. In October, it was reported that Sir Michael was discussing sale options with British Airways.

 

In 2006, according to the BMI's website, the airline flew 10.5 million passengers and earned a profit of 29.7 million.

 


Follow these links to find out more or to get a quote on Travel insurance, UK airport parking, UK airport hotels or UK airport lounges.



Jennifer Jones Editorial


09/12/2007



Related Travel News:

 
 



Read more European Travel news