If I recall correctly, Branson has wanted to merge and/or buy BMI for about 15 years. Sir Mike (it has been regularly reported) has never wanted this and only discussed matters to be polite. He continues (it has been regularly reported) to desire to be the second force in the UK airline world, for both short and long haul. He shows every sign of wanting to die 'in harness' and there are doubtless notes for succession in a safe.
Sir Mike has done very well over the years to establish BM and has been most unfortuante to have been fighting the establishment and regulatory groups most of the way. Whilst pax like myself continue to wonder just why the hell BD and VS have not done a deal loooooong ago, he owns the shares and is entitled to play his own game.
I venture to suggest that the opportunity to make a deal will soon be past, mainly because FR will have pulled the rug out from under the domestic biz and the international biz is too small. The consolidation of the Euro airline world is already behind natural commercial sense and, as many have said before (myself included) if Sir Mike continues to wait for the right deal, he will be left with no deal at all.
My expectation is that this opportunity will also be allowed to fail and BD will slip another notch lower. Very sad.