I think LH are the frontrunners here, mainly because they have an option on the shares owned by SMB. That could be a prime reason why he keeps rejecting VS. Now, with SQ selling 49% of VS, perhaps LH could perform a double whammy and merge VS and BD as one. SRB will sell if the price is right, and allow the Virgin brand to disappear.
"All" they would need to do is recover the Y seats, paint the aircraft, rename both FFPs as "Miles and Less" send the LHR A330 to MAN and work with the A340/A380 from LHR and the 744 from LGW.
Baby gets merged into GermanWings, operationally at least, regional stays the way it is (thy might get E-Jets though).
At lot of the European routes would be dropped, these are well served by FRA/MUC/ZRH but most of the domestics would be kept. LHR concentrates on B|MED, VS and Domestic territory. MAN has some room to grow a select number of US services, and perhaps India as well.
Brian.