Lufthansa is 'determined' to use option to gain majority stake in bmi
25.04.08
Lufthansa is 'determined' to use its option to obtain a majority stake in bmi, the German airline's chief financial officer Stephan Gemkow said today. He told journalists in a conference call: 'There is an option that enables us to acquire a majority stake in bmi. We are determined to use that option. Beyond that there is no need to hold talks (with bmi).
The German flag carrier holds a stake of 30% minus one share in bmi, the airline's founder and chairman, Sir Michael Bishop, holds 50% plus one share, and SAS holds the remaining 20%. Sir Michael has a 'put' option to sell his stake to Lufthansa, and the airline holds a 'call' option to buy out Sir Michael between December 2008 and June 2009.
For his part, Sir Michael said yesterday that bmi will not succumb to an ‘opportunistic or under-valued approach', in a speech to the Aviation Club in London yesterday. He said: ‘Whether bmi remains independent and grows through acquisition or whether the shareholders decide another course, we will not be bounced into any particular direction by comments from other carriers or the media.'
‘The future of the business will be determined with the best interests of bmi, its shareholders and staff being paramount.’
Bmi controls around 12% of the slots at Heathrow Airport. If Lufthansa was to gain control the the airline (assuming UK and European anti-trust regulators allow this), it would offer the German airline and its partners a massive opportunity to expand from the world's busiest international hub.
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