|Quoting Adicool (Thread starter):|
But what's really news to me is that according to this article from BBC (http://news.bbc.co.uk/1/hi/business/6751829.stm) LH also have an option to buy shares from Sir Michael Bishop in order to gain full control over BD.
Bit more clever than that especially from Sir Michael's point of view.
side they have the right to first refusal if He decides to sell , but they have to wait until he wants to sell : they
can-t force him by any particualr time scale.
On Sir Michael's side , he has an option to require LH
to purchase his shares at a guaranteed price - I think its
in the time frame up to end 2008 . A couple of years ago it looked like he would exercise this option and
would have to pay a price way above the current Mkt value. However with Open Skies , the value of BMI
because of its slot holding at LHR
has increased greatly . As result the balance has probably swung and the
has an option to purchase at probably undervalues the company significantly.
Consequently , Sir Michael probably wouldn-t sell altho I suppose LH
could renegotiate at a more realistic price.
Also I understand the agreement is with BMI
mainline operation i.e basically the LHR
part of the airline ,
Regional and BMI
Baby are separate and could still be retained by Sir Michael.
I-m not sure where the B.Med addition fits in any deal ...maybe some BMI
insider knows and no doubt they will
correct me ,if any of the above details are incorrect.
offer feed into LHR
/LH on their UK Domestic trunk routes.
2.Acquisition of BMI
slots at LHR
could allow LX
re-instate service to GVA
slots would allow LH
to assist other members of Star Alliance with LHR
4.Intro of LHL BMI
services at LHR
,particularly to U.S.A would allow LH
to codeshare on these services and
to cause hurt to BA
and at a much lower cost than if they operated services themselves.
I suspect BD
costs are much lower than LH