The various articles and business news bulletins that I have read suggest that it is SIA that are funding this bid through VS, SIA are of course a star airline and in acquiring bmi VS would likely become a star partner airline.
A deal with VS would probably attract less completion scrutiny than a IAG deal and therefore likely to be completed much more quickly, bmi is probably loosing £15+m a month in winter all of which is on DLH group accounts so even selling bmi to VS for half the reported IAG figure makes sense if it can be completed quickly and that is before you take any strategic value of star at LHR.
Selling to IAG would weaken star at LHR conversely brining Virgin into star at LHR would weaken BA.
I suspect DLH will make a choice before the end of this month, I think Virgin could win this unless IAG are willing to pay a substantial premium.
Whoever wins this battle could the loose the war! there seems to be little money to be made on short haul European flying these days and only BA have the international network to take advantage of extra slots and absorb bmi 319/20/21 into their short haul or LGW fleets or Iberia low cost start up.
Where would virgin get suitable aircraft from? There is a world wide shortage of 330's no chance of 380's, 777 would require expensive and time consuming re training ditto 747 although there are probably ex pats in the sand pit that would head West!
