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Topic: BA On Verge Of Announcing IB Merger This Friday
Username: OA260
Posted 2009-11-11 15:17:33 and read 8281 times.

According to Sky News BA could announce final agreement on IB merger in 48 hours. Seems the obstacles that prevented an announcement sooner have been ironed out.

Topic: RE: BA On Verge Of Announcing IB Merger This Friday
Username: SKY1
Posted 2009-11-11 16:17:19 and read 8116 times.

http://blogs.news.sky.com/kleinman/P...44786a-5e84-4c42-abe9-55c56a47c2ad

Both companies are working towards making an announcement as early as Friday

This is not the first time in the last year that it has been said, anyway. Let's wait 2 more days ...and see.

Topic: RE: BA On Verge Of Announcing IB Merger This Friday
Username: OA260
Posted 2009-11-12 03:40:27 and read 7600 times.

The new company being based in Spain will not please the UK Unions.

Topic: RE: BA On Verge Of Announcing IB Merger This Friday
Username: Aircatalonia
Posted 2009-11-12 03:52:58 and read 7534 times.

We will miss the speculation if it turns out to be true. It's been 3 years with the "IB and BA imminent merger"  

BTW: IB is up 10% in the stock market right now.

[Edited 2009-11-12 03:59:09 by airCatalonia]

Topic: RE: BA On Verge Of Announcing IB Merger This Friday
Username: Jayeshrulz
Posted 2009-11-12 04:11:14 and read 7456 times.

There were Rumors that BA change their HQ to Spain after the Merger?
Is it true?

To be frank i dont think so?
what do you think?

Topic: RE: BA On Verge Of Announcing IB Merger This Friday
Username: Evomutant
Posted 2009-11-12 04:17:55 and read 7421 times.



Quoting Jayeshrulz (Reply 4):
There were Rumors that BA change their HQ to Spain after the Merger?
Is it true?

To be frank i dont think so?
what do you think?

Does it work for the Spain/LatAm bilaterals?

If BA is the bigger part of the new company, that could cause problems. Having it officially HQ'd in Spain might solve them.

Topic: RE: BA On Verge Of Announcing IB Merger This Friday
Username: Scouseflyer
Posted 2009-11-12 04:18:09 and read 7411 times.



Quoting OA260 (Reply 2):
The new company being based in Spain will not please the UK Unions.

I'm sure that they'll have a good moan too but reading this quote from the original source:

"If the deal goes ahead, both BA and Iberia will continue to locate their principal operations in London and Madrid respectively, although the parent company is likely to be incorporated in Spain for tax purposes. It is also set to have stock market listings in both London and Madrid, although the latter point remained unclear tonight."

In effect they're going to continue as two separate companies owned by an new overall business so BAs headquarters will remain in the U.K.

I think that the way that this is being done will allow other airlines to be brought into the group at a later date - TAP or BMI anyone?

Topic: RE: BA On Verge Of Announcing IB Merger This Friday
Username: BlooBirdie
Posted 2009-11-12 06:35:32 and read 7042 times.

Inching closer to a deal.

From FT Alphaville (constantly updated):

Quote:
Iberia’s supervisory board has approved a merger with British Airways, El Pais reports on its website, citing people familiar with the situation. Says the ratio has been agreed at 45:55 (Iberia/BA), with the combined group’s financial HQ to be in London. Regarding management, Antonio Vazquez is said to be the group’s president and Willie Walsh the chairman. Adds that BA is also holding a board and is still pending approval.

Topic: RE: BA On Verge Of Announcing IB Merger This Friday
Username: PM
Posted 2009-11-12 06:37:06 and read 7021 times.



Quoting OA260 (Reply 2):
The new company being based in Spain will not please the UK Unions.

Oh get real. This is 2009.

Topic: RE: BA On Verge Of Announcing IB Merger This Friday
Username: Glom
Posted 2009-11-12 06:41:45 and read 6970 times.

What does this mean for my BAY holdings?

Topic: RE: BA On Verge Of Announcing IB Merger This Friday
Username: Hardiwv
Posted 2009-11-12 06:43:52 and read 6937 times.



Quoting OA260 (Reply 2):
The new company being based in Spain will not please the UK Unions.

According to El Pais breaking news agreement has been reached that the HQ of the merged airline will be in London while the CEO will be Antonio Vázquez, current CEO of IB.

In the resulting holding, BA will have 55% and IB 45%.

Rgs,

Topic: RE: BA On Verge Of Announcing IB Merger This Friday
Username: AirCatalonia
Posted 2009-11-12 06:44:02 and read 6914 times.



Quoting Glom (Reply 9):
What does this mean for my BAY holdings?

It means they are up 10% today, and IB up 13%.

Good for you  Wink

Topic: RE: BA On Verge Of Announcing IB Merger This Friday
Username: BalZ18
Posted 2009-11-12 06:56:00 and read 6809 times.

Ok so if this really does happen then how does it look with the AA/BA venture?

Topic: RE: BA On Verge Of Announcing IB Merger This Friday
Username: Glom
Posted 2009-11-12 07:00:21 and read 6734 times.



Quoting Hardiwv (Reply 10):
According to El Pais breaking news agreement has been reached that the HQ of the merged airline will be in London while the CEO will be Antonio Vázquez, current CEO of IB.

In the resulting holding, BA will have 55% and IB 45%.

Will it be a AF/KL type affair, where the individual brandings are retained?

Quoting AirCatalonia (Reply 11):
It means they are up 10% today, and IB up 13%.

What will happen to them when the merger goes ahead?

Topic: RE: BA On Verge Of Announcing IB Merger This Friday
Username: IADCA
Posted 2009-11-12 07:24:57 and read 6502 times.



Quoting Glom (Reply 13):
Quoting AirCatalonia (Reply 11):
It means they are up 10% today, and IB up 13%.

What will happen to them when the merger goes ahead?

Depends on the type of merger. Most likely, this will be done in a manner that causes old BA and IB shareholders to just automatically get shares in the new holding company.

On the sarcastic side, National Express must be licking their lips. After the pulldown of BCN and MAD, that'll be a hell of a bus ride to LHR. Somehow, it will still stop at Milton Keynes.

Topic: RE: BA On Verge Of Announcing IB Merger This Friday
Username: Slinky09
Posted 2009-11-12 07:41:23 and read 6330 times.



Quoting Hardiwv (Reply 10):
According to El Pais breaking news agreement has been reached that the HQ of the merged airline will be in London while the CEO will be Antonio Vázquez, current CEO of IB.

Love that, completely opposite to the UK version!

The BBC is now reporting that simultaneous board meetings at BA in London and IB in Madrid are taking place ...

Topic: RE: BA On Verge Of Announcing IB Merger This Friday
Username: KrisYYZ
Posted 2009-11-12 08:08:38 and read 6029 times.

Will the merger produce an airline like KL/AF where both airlines are allowed to maintain their own corporate identity? Or will it be a melting pot merger like DL/NW ?

I don't think that this will be good for the flying public. It seems like the European skies will be ruled by major airline groups like AF/KL, LH/LX/OS and now BA/IB.

KrisYYZ

Topic: RE: BA On Verge Of Announcing IB Merger This Friday
Username: VV701
Posted 2009-11-12 08:28:28 and read 5863 times.

Do not concern yourselves too much as to where the holding company will be incorporated. It does not necessarily mean much apart from under which country's laws it operates.

Air Berlin, a very German airline in any respect you care to nominate, is incorporated in the UK, is registered at the UK Companies House and has its registered office in Rickmansworth, Hertfordshire.

Topic: RE: BA On Verge Of Announcing IB Merger This Friday
Username: Theginge
Posted 2009-11-12 10:18:53 and read 4989 times.



Quoting KrisYYZ (Reply 16):
Will the merger produce an airline like KL/AF where both airlines are allowed to maintain their own corporate identity? Or will it be a melting pot merger like DL/NW ?

As far as being published on the news sites it is that they will maintain seperate identities.

Quoting KrisYYZ (Reply 16):
I don't think that this will be good for the flying public. It seems like the European skies will be ruled by major airline groups like AF/KL, LH/LX/OS and now BA/IB.

But this is the reality of todays world, airlines that are too small can't really survive any more.

Topic: RE: BA On Verge Of Announcing IB Merger This Friday
Username: RedChili
Posted 2009-11-12 10:31:53 and read 4889 times.



Quoting KrisYYZ (Reply 16):
Will the merger produce an airline like KL/AF where both airlines are allowed to maintain their own corporate identity? Or will it be a melting pot merger like DL/NW ?



Quoting Theginge (Reply 18):
As far as being published on the news sites it is that they will maintain seperate identities.

If they would do a DL/NW merger, they would be forced to cancel a lot of routes to destinations outside the EU, as there's no open skies agreement in place between the EU and most non-EU countries. Basically, to operate flights between Spain and Argentina, you need to have an airline that's registered in Spain or Argentina. To operate flights between China and the UK, you need an airline that's registered in one of those two countries. Doing a full DL/NW style merger would basically be suicide.

Topic: RE: BA On Verge Of Announcing IB Merger This Friday
Username: Hardiwv
Posted 2009-11-12 11:58:49 and read 4214 times.



Quoting Glom (Reply 13):
Will it be a AF/KL type affair, where the individual brandings are retained?



Quoting KrisYYZ (Reply 16):
Will the merger produce an airline like KL/AF where both airlines are allowed to maintain their own corporate identity? Or will it be a melting pot merger like DL/NW ?

IB/BA merger will be similar to KL/AF, but in the latter both the HQ and the CEO position was retained by AF. In view of the difficult financial situation BA has lost bargaining power with IB. Not long ago during merger talks there was indication that IB would make only 20% of the holding, now the holding is shaping with 45% IB and 55% BA.

Rgs,

Topic: RE: BA On Verge Of Announcing IB Merger This Friday
Username: Evomutant
Posted 2009-11-12 12:31:49 and read 3956 times.

Forgive my ignorance on things on things financial, but I have a question.

The reported deal is 55/45 in favor of BA. But BA own 13% of IB. So does that effectively make it 60/40 (or thereabouts) in BA's favor?

Topic: RE: BA On Verge Of Announcing IB Merger This Friday
Username: Sam1987
Posted 2009-11-12 12:31:52 and read 3956 times.



Quoting SKY1 (Reply 1):
The new company being based in Spain will not please the UK Unions

More likely to be London I reckon.

Quoting Aircatalonia (Reply 3):
It's been 3 years with the "IB and BA imminent merger"

This time it really is imminent... I'd be surprised if there isn't a formal announcement tomorrow.

Quoting Jayeshrulz (Reply 4):
There were Rumors that BA change their HQ to Spain after the Merger? Is it true?

BA HQ will remain at LHR.

Quoting KrisYYZ (Reply 16):
Will the merger produce an airline like KL/AF where both airlines are allowed to maintain their own corporate identity?

Yes.

Topic: RE: BA On Verge Of Announcing IB Merger This Friday
Username: BA174
Posted 2009-11-12 12:44:13 and read 3844 times.



Quoting Hardiwv (Reply 10):
According to El Pais breaking news agreement has been reached that the HQ of the merged airline will be in London while the CEO will be Antonio Vázquez, current CEO of IB.

In the resulting holding, BA will have 55% and IB 45%.

I heard that Willie Walsh would be CEO and Antonio Vazquez would be vice president.

Topic: RE: BA On Verge Of Announcing IB Merger This Friday
Username: Sam1987
Posted 2009-11-12 13:04:54 and read 3656 times.



Quoting Sam1987 (Reply 22):
I'd be surprised if there isn't a formal announcement tomorrow.

Looks like I'm wrong... seems as though the BBC are announcing it already.

Topic: RE: BA On Verge Of Announcing IB Merger This Friday
Username: OP3000
Posted 2009-11-12 13:07:44 and read 3638 times.

From El Pais - the BA board has ratified the merger proposal:

http://www.elpais.com/articulo/econo.../elpepueco/20091112elpepueco_7/Tes

Topic: RE: BA On Verge Of Announcing IB Merger This Friday
Username: RTFM
Posted 2009-11-12 13:17:53 and read 3727 times.

On BBC too...

http://news.bbc.co.uk/1/hi/business/8356780.stm

Topic: RE: BA On Verge Of Announcing IB Merger This Friday
Username: R2rho
Posted 2009-11-12 13:34:07 and read 3512 times.

Well this merger has been "imminent" for so long that I'll believe it when I see it, but it's true that this time around it does seem much more imminent than the previous times.

Key points:

- Holding company based in Madrid
- Vazquez Chairman, Walsh CEO
- IB reserves the right to cancel the deal if BA does not reach a satisfactory agreement about its pension plan
- Caja Madrid would own around 11% of the new entity
- Split: 55% BA, 45% IB
- It will be an AF/KL style merger, with both airlines keeping their brands and operations in their respective hubs
- the board will consist of 14 members, 7 from each airline

http://www.elmundo.es/mundodinero/2009/11/12/economia/1258058573.html

Quoting VV701 (Reply 17):
Do not concern yourselves too much as to where the holding company will be incorporated. It does not necessarily mean much apart from under which country's laws it operates.

That's right, it'll be mostly for legal and tax purposes. IB and BA will likely maintain their operational HQ's in MAD and LHR.

Quoting Evomutant (Reply 21):
The reported deal is 55/45 in favor of BA. But BA own 13% of IB. So does that effectively make it 60/40 (or thereabouts) in BA's favor?

Nope, because IB own around 10% of BA, too.

Topic: RE: BA On Verge Of Announcing IB Merger This Friday
Username: R2rho
Posted 2009-11-12 13:42:54 and read 3412 times.

Imminent indeed, MoU has been signed.

Communication from IB to the Spanish SEC (in Spanish):
http://www.cnmv.es/portal/HR/verDoc....7356f-768c-4642-b01c-ed9f4646ee90}

Topic: RE: BA On Verge Of Announcing IB Merger This Friday
Username: EPA001
Posted 2009-11-12 13:45:28 and read 3405 times.



Quoting R2rho (Reply 27):
Key points:

- Holding company based in Madrid
- Vazquez Chairman, Walsh CEO
- IB reserves the right to cancel the deal if BA does not reach a satisfactory agreement about its pension plan
- Caja Madrid would own around 11% of the new entity
- Split: 55% BA, 45% IB
- It will be an AF/KL style merger, with both airlines keeping their brands and operations in their respective hubs
- the board will consist of 14 members, 7 from each airline

Very interesting Key Points. The AF-KLM model should work just fine for BA and IB.  Smile So now it seems only LH will survive on its own, which is quite an achievement due to their clever strategy with take-overs.

So that leaves now three big entities as the large European airliners. I do not think that is a surprise to the most of us.  Smile

Topic: RE: BA On Verge Of Announcing IB Merger This Frida
Username: Jamies80085
Posted 2009-11-12 14:23:16 and read 2935 times.

according to BBC, virgin are not happy bunny's tonight! now there's a surprise, how does that liken the possibility of virgin hounding Lufthansa for bmi now then?

Quoting EPA001 (Reply 29):
So that leaves now three big entities as the large European airliners. I do not think that is a surprise to the most of us.  

if that leaves us three, what are the chances of the 'big three' competing on very low prices with the likes of the LCC's like fr and u2?

[Edited 2009-11-12 14:24:14 by jamies80085]

[Edited 2009-11-12 14:24:47 by jamies80085]

Topic: RE: BA On Verge Of Announcing IB Merger This Friday
Username: Glom
Posted 2009-11-12 14:38:39 and read 2740 times.

What's the point of merging if you maintain separate operations? No doubt it leads to a payrise for the head honchos.

Topic: RE: BA On Verge Of Announcing IB Merger This Friday
Username: Theginge
Posted 2009-11-12 14:38:57 and read 2742 times.



Quoting Jamies80085 (Reply 30):
according to BBC, virgin are not happy bunny's tonight! now there's a surprise, how does that liken the possibility of virgin hounding Lufthansa for bmi now then?

Virgin will never be happy about anything BA or anyone else does. If they are so worried why don't they actively seek to merge with another carrier?!?!?

Topic: RE: BA On Verge Of Announcing IB Merger This Friday
Username: Jamies80085
Posted 2009-11-12 14:44:46 and read 2672 times.



Quoting Theginge (Reply 32):
Virgin will never be happy about anything BA or anyone else does. If they are so worried why don't they actively seek to merge with another carrier?!?!?

precisely. Anything anyone does at LHR they are up in arms about but they never do anything to counter what they are complaining about

Topic: RE: BA On Verge Of Announcing IB Merger This Friday
Username: Scbriml
Posted 2009-11-12 15:05:15 and read 2554 times.

Now that the merger has been announced, please continue discussion here:
Its Official: BA And IB Agree To Merger (by OP3000 Nov 12 2009 in Civil Aviation)

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