Branson To Battle For Go

[electricblue]

http://www.sky.com/skynews/article/0,,30400-1050681,00.html

A battle is brewing in the skies above Britain after Friday's surprise announcement that easyJet is in takeover talks with rival budget airline Go. Now Sir Richard Branson's Virgin Express is emerging as another possible contender.

Virgin Express chairman David Hoare confirmed he would seek talks this week with Go's venture capital backers 3i.

But he did not reveal whether he had been instructed to counter-bid for the business.

Some analysts believe a £400m deal between Luton-based easyJet and Go will be unveiled on Wednesday when easyJet posts its interim results.

However, a Virgin Express spokesman said: "This is an interesting development in the European market and we want to see if we can be involved in some way."

Virgin Express, in which Virgin Group has a 59% stake, failed to land a merger with Sabena successor SN Brussels Airlines, earlier this year.

But it has flown into profit after the scrapping of unprofitable routes and is now focussing on expanding its Brussels network.

Go, which became independent of British Airways last year, started in 1999 under the leadership of American Barbara Cassani.

Ms Cassani is likely to lose her job if Go is taken over by easyJet, but the deal will make her a millionaire.

[BIG DICK]

I htought the deal was already done, apart from the usual minor technicalities.

Has anyone else heard this story or am I the only one that has not opened my eyes recently?

[Blue Bay]

I hope Branson is serious. Go is such a good brand it seems a real shame for it to go orange. If Branson has the cash I am sure B Cassani and co would be happier to deal with him than Stelios....but then all 3i see is £££££££££££ and not people.

[Oleo]

This is getting interesting... a potential bidding war. Excellent.

[BEagle]

Blue Bay - an airline 59% owned by Sir Richard Branson's Virgin Group to take over something which BA once owned?

That would be a bitter pill for some to swallow. But whatever - Easyjet has a sound position as the major low-cost and the charismatic heads of both Easyjet and Virgin obviously know what they're doing - and the outcome will surely help the position of low-cost airlines in Europe.

[Pilot Pete]

From this mornings Times ;

Virgin rules out Go bid

Virgin Express, the low-costairline, owned by Sir Richard Branson's Virgin Group, yesterday ruled out a late bid for the rival Go. However, Virgin said that it would hold talks with 3i, the venture capital group that is Go's principal shareholder, over future investment in the airline industry's discount sector, in which Virgin is looking to expand. Easyjet is expected to announce later this week the aquisition of Go for about £400M, to be partly funded by a share issue.

PP

[Landing_24R]

Blue Bay,

I agree with your sentiments whole-heartedly, unfortunately it is likely to be wishful thinking :(

[Blue Bay]

BEagle,
Bitter pill for some ex BA's maybe, but not a choking pill that Easyjet would seem to be for the majority.

[Wing Commander Fowler]

Branson Buy Go???? Someone's gotta be kidding - why 'twas only last week me and me tart were chuckling over the fact that Go's valuation was somewhere between 3 and 400 million when that burk couldn't even get a buyer for a nine aeroplane operation out of Shannon at Ten million. Hehe...... life does make me chuckle sometimes, dear o' dear.

[Digitalis]

As far as I can see, there was never any suggestion that VEx were interested in Go. It looked to me like they were wanting to sweet-talk 3i in to investing in VEx with some of the money released by the sale of Go to EZ. Less hype, more news, please!