Lufthansa to sell BMI stake.

[lhr_slots]

Here's a scenario...

Bishop uses his 50%+1 share to sell himself bmibaby for £1 and exercises his put option to extract £229m from LH for the rest of bmi. So, Bishop can still play with airplanes for a few more years.

bmi is now no longer majority owned by a UK citizens, so are kicked off US, Canada and India - countries that do not recognise EU designation.

LH are left with an unprofitable UK shorthaul airline feeling a bit like BMW with Rover.

Dump the thing before it loses them any more money and face, probably to VS.

You heard it here first.

[acbus1]

One of these days I'll get an intelligent answer to some of the questions I raise, or an intelligent response to some of my points.

Instead a small handful of individuals can only manage to hurl personal insults or invent "what they know" about me.



OK, lets try a simple one then....

If bmi are as wonderful as some here seem to think, then how come both SAS and LH are so keen to ditch their share?

[max nightstop]

Just a theory AC...

If they keep the 30pc, Lufty are faced with the possibility of being forced to pay way over the odds for the rest. Regardless of how wonderful bmi are, the rest of Bish's share is not worth what they could be forced to pay.

I think i might make a noise about selling just to stop any thoughts anyone might have about making me do the buying.

If Lufty DID sell, then what would SAS look like, holding 20pc, and staring at the prospect of being the smallest partner, in a triumverate not of their choosing. What's the point, they'd want to be out too.

[b mi baby]

then how come both SAS and LH are so keen to ditch their share?

Because their management (due to their own incompetence) allowed Sir MB to negotiate a deal which protected his interests. They are losing money like everyone else and LH in particular are VERY exposed as a result of the 'put' option that Sir MB might take advantage of at any time. I would want rid of my share as well under the circumstances. Providing Sir MB keeps 50%+1 share it matters not one jot who the other 50%-1 share belongs to. Personally I would like to see him take it all back cos bmi is a company that is on the way up again.

BTW - ask an intelligent question rather than just ranting and you might get an intelligent asnswer.

[max nightstop]

Bit harsh on the Lufty management "B mi Baby" They took a gamble on the value of their investment going up and got it wrong, a few unfortunate world events may have influenced this value slightly.

As for bmi on the way up, i'd like to think so but what makes you so sure? Particularly if you are in the part which your handle suggests...leaderless and poised for industrial action?

[acbus1]

Because their management (due to their own incompetence) allowed Sir MB to negotiate a deal which protected his interests.

Or (more intelligently) ----

Because their management assumed they were'nt dealing with incompetents.

A lesson Sir Dickie will learn unless he obliterates the bmi management when/if he takes over. Only one way to deal with cancer..........

[Little Blue]

AC...
Who's inventing anything.....
How many times have you re-invented yourself on here?
pot kettle noir.

Whether Lufty or Sas want to keep their stake or not
is not within our control, and however much we like/not like it,
there's sweet FA that we can do to change the situation.
.
Que sera....etc etc..

[Vol7]

Max N/Stop - Particularly if you are in the part which your handle suggests...leaderless and poised for industrial action?

bmibaby has a leader keep up with the times things change it doesn't mean anything more
-
As for Industrial action we will just have to wait and see but it seems funny that the Pilots (The highest paid) are the only ones who have not accepted the pay deal in the whole group it is nearly time for this years review and last years is still being argued I for one would be very surprised if we saw any action at all
-
Back to the subject in hand
-
Acbus you do come across as a very bitter man are you an ex employee of bmi's by any chance
The fact of the matter is LH are losing money (16M a year I believe) to bmi and seeing no return
I agree that bmi is on its way back however and Long Haul could be their saviour if the India routes pay off as planned

[Stifler]

I am starting to wonder- where was acbus1 at 0410 on Saturday 22nd?

[chipsbrand]

It is interesting to recall that when bmi joined Star and sold shares to LH back in 2000, I think it was, the bmi management with the exception of someone who has gone on to greater glory since then was beguiled with the wonders of LH. Great systems, great support, great future. It actually cost bmi around £10 million just to join that club and they have probably got very little in return. It will all have to be spent again if they are taken over by someone else. I cannot recall that LH managers were ever beguiled with the wonders of bmi. It was not a deal that attracted popular support in that company.

In the meantime any buyer has to ponder the problem that bmi poses. That is that it is a high cost operation that can only survive if it is able to attract a premium because it operates from LHR. But it sells itself now as a low cost operation. It seems to fail even at that because at the fares it charges it ought to be full out of LHR. But it isn't. So it is failing.

Methinks the strategy of going to Star was a Star too far.

[I.C.Nosignal]

bus1 the "small handful" seems to be growing wouldn`t you say old chap??

[Anne.Nonymous]

Acbus1

Ask an intelligent question and you may get the response you are looking for.

As for why the other shareholders want to sell I think Max Nightstop is right. Both SAS and LH are in a corner if SMB enforces his 'put' option.

Anne

[Tags]

Meetings will be taking place with various CC reps over the weekend including VS

Not the case. The VACC don't have a meeting scheduled, at this point in time.

[scroggs]

Balpa have now been informed offically by bmi that Luffty and SAS are set to dispose of their bmi share holding.Meetings will be taking place with various CC reps over the weekend including VS

No such meeting has been sought with Virgin's Crew Committee over the weekend, and none has been scheduled for the future.

[averytdeaconharry]

Just suppose for one moment that the highest bidder for the LH and SAS stakes is Ryanair. LH as a publicly quoted company will have to accept that offer. Remember that Ryanair is cash rich at the moment and could easily afford the price quoted in today's Sunday Times.

Just imagine bmi and baby becoming part of Ryanair with 13% of the slots at LHR. It sure would change things.

MOL is probably having a very enjoyable weekend. It could be the best opportunity his airline has ever had.

[CarltonBrowne the FO]

And imagine the fun that SMB could have if MOL owned 49% of the stock in his company... like deciding it was in the company's interest to not give any dividend for a few years, or selling his 50%+1 to Stelios....

[lexxity]

Don't even joke about, please for all our sakes.

[Young Paul]

It's worth noting that a lot of the "loss" that LH put down to bmi was actually a good-will writedown - in other words, it wasn't a reduction of cash in the bank (a real loss experienced), it was a reduction in the estimated value of an investment. Part of the rest of the "loss" may be something to do with the fact that bmi sacrificed its most profitable route (Frankfurt) when it became part of Star/Lufthansa became part of it - was there a quid pro quo?

[Copenhagen]

What about Wille Walsh and his EI friends taking over BD, thanks to venture capital from 3iii? Exact Same fleet to EI, and a similar business model (prior to recent EI changes) too.

[lexxity]

heard on the jungle drums that LH have sold their share, anyone in pprune land heard anything more?