Just reading the Trade Press for Travel Agents -
Virgin plans bmi merger
VIRGIN
Atlantic is has announced
plans for a merger with bmi,according to media reports in
Germany this morning.VS external affairs and route
development director Barry Humphreys is quoted in the
Sueddeutsche Zeitung
as saying“we are very interested in a merger with bmi.”
It’s understood Virgin is pushing bmi’s 30% shareholder Lufthansa
AG to agree to the deal. Lufthansa holds an option to
buy Sir Michael Bishop’s 50% plus one share of bmi by the end of
Jun next year, with the report saying LH would have to pay at
least £229m to buy the shares. Scandinavian Airlines holds the
remaining 20% and has signalledintentions to offload its stake
before the middle of 2008.Analysts say bmi’s European
network would complement Virgin Atlantic’s long-haul routes.