Jet Aviation Going?

[tarmac7]

Read that Jet Aviation may be going public:

http://www.corporateflyer.net

I thought that 3i was going buy them or PrivatAir?

[vdive]

"Heard" that Jet Aviation is not doing so well right now. Seem to have some upper Management troubles in Switzerland and Palm Beach. Any insights or corrections ?

[tarmac7]

Jet Aviation tossed Kelley earlier this year and brought in several Swiss bigwigs to run the American side of the operations. Seems that the 5 story Taj Mahal at TEB really ticked the Europeans off: too extravagant and built on a future promise of money. Unfortunately, the economy tanked and Jet's fortunes have gone down with it.

I still think that PrivatAir will make a go for them. Jet Aviation only pulled themselves off the market because the asking price was low. Warren Buffet offered them $475 million and would have probably divided the company up keeping the good stuff and chucking the remainder. PrivatAir may be a good match.

Anyone else want to comment on the article?
http://www.corporateflyer.net

or what we're saying?

:}

[vdive]

Don't know if that artice reveals the truth behind jetaviation's going public mission.

"Economic reports are now pointing to a recovery, giving company managers optimism that the timing is right for such an offering."

There was the story of the managing director's son in palm beach who wasn't really able to run the company, so she has taken over the lead again. Then there was the short introduction of the former crossair patron Moritz Suter who got fired only days later, also not being able to manage this company. Weird story.

Some sources are whispering that the company has financial troubles. When you need money badly or you plan an immense expansion and don't have the goods for it - go public...

Might be wrong on it.

[tarmac7]

When the Hirschmann family first put the company on the block they had Goldman Sachs go out and find potential mates for Jet Aviation. Reportedly, 40 companies were approached, but only a handful submitted serious bids.

Warren Buffet gave a firm offer of, I believe US$475M for the company, somewhat below Jet's asking price of at least US$525M. Jet was then approached by UK's 3i and the companies signed an exclusive agreement for 3i to purchase Jet, but only after due diligence was successfully completed.

By the time the due diligence period was over, the economy had sunk further and it was revealed that Jet had more baggage on the U.S. side than originally thought, i.e., a fleet of aged aircraft in their Private Fleet; a costly unpaid for FBO at TEB; and a virtually nonexistent presence on the all important US west coast.

So, the whispers you are hearing about Jet's financial performance are probably in line with their need to raise cash. Ultimately, they might do better trying to take the company public than trying to sell the company at fire sale prices. Eventually as global consolidation continues, they will probably be snapped up or piece-mealed out.