FR could dump their shares tomorrow, depress the share value, allowing a predatory hedge fund to hover up the 29% (maybe more) This could then lead to asset stripping of the company. It has already been noted that EI is worth more than it market capitalisation implies.
But a hedge fund could've 'snapped it up' at 60 cents or so just 18 months ago, when it was just as cash rich as today! Even better value. Why didn't they?
Well for one thing, what good would 29% do a hedge fund? They'd be in a worse scenario than FR, with not a hope in hell of getting to 50+%.
For another thing, it is a political hot potato, and that's an undeniable fact.
Isn't it amazing FR hasn't already sold up, given all the predictions for the EI share price if this bid failed?
Truth is, FR has a lot to lose now in a fire sale.
Besides the crystallisation of losses on the original investment, and the huge loss of face that brings, there's the risk that (as some predict above) a stronger competitor airline could get it and create bigger headaches for FR than EI ever was.
What to do?
Jumped in with both feet. Not so easy to jump out.