LH to take controlling share in bmi - it is official. Better get the German phrase book ou!
29 October 2008
Dear Colleagues,
As many of you are aware from press speculation and comment, our two principal shareholders, Sir Michael Bishop and Lufthansa, have certain options over Sir Michael's majority shareholding in bmi, which were agreed when Lufthansa first became a shareholder in bmi in 1999.
On 10 October Lufthansa and Sir Michael Bishop on behalf of the BBW Partnership Ltd exercised an option which requires Lufthansa to purchase 50 per cent plus one share in British Midland PLC (bmi). It is expected that completion of the transaction will take place in mid January. In the meantime the Board and the management of the company will remain unaltered, but it is anticipated that alterations to the Board to reflect the new majority shareholding will take place on or around the date of the transfer of ownership.
This is a major change for bmi as Sir Michael has held a controlling interest in the airline since 1978. This brief note cannot adequately reflect his contribution to the company since joining the airline in 1964.
Discussions have already taken place with Lufthansa as to the future shape and direction of the bmi group. It is also worth remembering that Lufthansa have had representatives on our Board for the last nine years and therefore have a good view of all aspects of our business already. However, those discussions will now intensify and it would be wrong for me to prejudge the conclusions at this stage. Personally I am pleased that we are becoming a member of the Lufthansa family in this challenging time for our industry.
As soon as I have further details you will of course be advised. In the meantime please do not let the media interest or internal speculation about what may or may not happen as a result of the change in ownership distract you from the job in hand which remains just important regardless of who the shareholders are.