Oh Noooooooooo!! Lufthansa confirms takeover of BMI

[SQtraveller]

post deleted

[jjpb3]

I see LH's legal department finally woke up. This would be interesting to follow.

[jhm]

Worst thought: If LH backs out successfully, and BD goes bust .... what happens to all our 236 stock specials? :o

The opinion in this thread:

http://pyeinthesky.suddenlaunch3.com...num=1242543546

seems to be that you/we'll be stuffed because your 236 stock ticket is a contract with BD. You would be reliant on the goodwill of the relevant airline(s) in such a situation and "past bankruptcies within alliances have usually produced statements from the erstwhile alliance partners that they will honour tickets already issued".

[milehighj]

I'm curious to know what either side REALLY want. Do they want the deal consumated? Or does one or both parties want out? Either way, we should see a game of corporate brinkmanship play out. And the longer the better if it somehow prolongs the current Diamond Club structure a little longer...

The last high profile corporate transaction was Fiat's put option with GM, which played out with GM compensating Fiat (a huge sum) for backing out. [Interesting fast forward to see Fiat now in the running to buy a big chunk of GM...]

[SQflyergirl]

I'm curious to know what either side REALLY want.

Prima Facie - LH wants SMB to put BD in the state that BD was in when LH signed on the dotted line all those years ago.

[MAN Flyer]

Prima Facie - LH wants SMB to put BD in the state that BD was in when LH signed on the dotted line all those years ago.

I think the fact that LH are currently buying two other airlines at the moment, coupled with the current global economy woes means they are probably not as enthusiastic to get hold of BD as they were probably a year ago. LHR slots or not.

[milehighj]

Prima Facie - LH wants SMB to put BD in the state that BD was in when LH signed on the dotted line all those years ago.

All well and good... But if LH wanted BD in the state it was in then, well it should have bought it way back then...

What I'm wondering is whether, here and now, either party still want to consumate the deal, or either side is posturing for the best divorce terms...?

I only wonder out loud as it'll impact my little stake in the deal, which are the 150k or so DC miles which I can either burn now in anticipation of the M&M merger, or hang on to in the hope that they don't get devalued so soon...

[SQflyergirl]

I think the fact that LH are currently buying two other airlines at the moment, coupled with the current global economy woes means they are probably not as enthusiastic to get hold of BD as they were probably a year ago. LHR slots or not.

Fair enough, but some would say a deal's a deal.

All well and good... But if LH wanted BD in the state it was in then, well it should have bought it way back then...

What I'm wondering is whether, here and now, either party still want to consumate the deal, or either side is posturing for the best divorce terms...?

I only wonder out loud as it'll impact my little stake in the deal, which are the 150k or so DC miles which I can either burn now in anticipation of the M&M merger, or hang on to in the hope that they don't get devalued so soon...

Gosh, now looking back, when the FF world was gasping at M&L swallowing up our beloved DC - In hindsight now might not have been the worst possible outcome....

[Kiwi]

Worst thought: If LH backs out successfully, and BD goes bust .... what happens to all our 236 stock specials? :o

When AN went under tickets where travel had already commenced were honoured (where it was possible to do so on another *A airline). Those ticketed to go to non-*A places or who had not yet started their trip lost out (along with all the lost points balances).

[milehighj]

Lufthansa settles row over bmi purchase



Lufthansa settles row over bmi purchase
Chris Johnston
Lufthansa has struck a new agreement to buy bmi from Sir Michael Bishop, the British airline's majority shareholder.

Sir Michael took the German flag carrier to the High Court last month in an attempt to force Lufthansa to exercise an option that it had to buy out his stake in bmi.

Both parties said today that they had reached an out-of-court settlement of their dispute surrounding the transaction.

Lufthansa will pay Sir Michael £175 million to cancel a “put” option that would have forced Lufthansa to buy directly a stake of 50 per cent plus one share in bmi.

A third company, LHBD Holding, which is based in Britain, will buy the stake for about £48 million, while Lufthansa acquires 35 per cent of the shares in LHBD.

“After obtaining the necessary traffic rights, Lufthansa expects to be able to acquire 100 per cent of LHBD,” the statement said. It did not say how much Lufthansa would pay for the LHBD shares.

http://business.timesonline.co.uk/to...cle6555445.ece

[Kyo]

What a clever development indeed - didn't see this outcome coming.

So, BD 'safe' and predictable as ever for the near future?

[MAN Flyer]

So, BD 'safe' and predictable as ever for the near future?

I don't think anything is predictable now, except that the end of DC has moved a step closer.

[jhm]

Surely it's a better outcome than LH managing to pull out totally leaving BD on the road to insolvency.

[HUGE AL]

Lufthansa will pay Sir Michael £175 million to cancel a “put” option that would have forced Lufthansa to buy directly a stake of 50 per cent plus one share in bmi.

A third company, LHBD Holding, which is based in Britain, will buy the stake for about £48 million, while Lufthansa acquires 35 per cent of the shares in LHBD.

So, am I to understand that SMB gets £223M in addition to his €400M for the airline and the original price LH paid for their call option?

[trekkie]

deleted