Markam
Topic Author
Posts: 318
Joined: Sun Jan 13, 2008 6:17 am

12% Stake In IAG For Sale

Thu Jun 27, 2013 1:05 am

According to Spanish news media Bankia has announced its intention to sell its 12% stake in IAG for about 700 million euros:

http://www.elmundo.es/elmundo/2013/06/26/economia/1372269026.html (Spanish only)

Who do you think could likely be interested in buying this stake? Other institutional investors? Other airlines?
 
FWAERJ
Posts: 2591
Joined: Wed Jun 07, 2006 1:23 am

RE: 12% Stake In IAG For Sale

Thu Jun 27, 2013 1:16 am

Quoting Markam (Thread starter):
Other airlines?

I'd say QR - they are flush with cash, and after all, IAG (BA to be specific) invited QR to oneworld.
"Did he really need the triple bypass? Or was it the miles?"
 
Markam
Topic Author
Posts: 318
Joined: Sun Jan 13, 2008 6:17 am

RE: 12% Stake In IAG For Sale

Thu Jun 27, 2013 1:53 am

Very interesting, I had not thought about this option, but it does make a lot of sense. Having a OW partner as a shareholder would provide much more stability for IAG than having just another institutional investor buying the stake, and i would also probably reassure QR and keep them committed to the long term with IAG and OW... 12% is far from a controlling stake but it probably gives a lot of say in company matters.
 
mffoda
Posts: 1017
Joined: Thu Apr 15, 2010 4:09 pm

RE: 12% Stake In IAG For Sale

Thu Jun 27, 2013 2:37 am

The IB situation is more severe then the recent IAG CEO news release stated??
harder than woodpecker lips...
 
Markam
Topic Author
Posts: 318
Joined: Sun Jan 13, 2008 6:17 am

RE: 12% Stake In IAG For Sale

Thu Jun 27, 2013 2:43 am

Bankia, a Spanish bank, has been in dire straits for a while, so they are looking at divesting non-core investments. That is why they have put their stake in IAG up for sale, I do not think that it has to do with IAG's or IB's situation at all.
 
FURUREFA
Posts: 635
Joined: Mon Mar 01, 2004 2:26 am

RE: 12% Stake In IAG For Sale

Thu Jun 27, 2013 2:50 am

Quoting Markam (Reply 4):
Bankia, a Spanish bank, has been in dire straits for a while, so they are looking at divesting non-core investments. That is why they have put their stake in IAG up for sale, I do not think that it has to do with IAG's or IB's situation at all.

And all this has already been factored into IAG's share price, resulting in the current "overhang".
 
YVRLTN
Posts: 2268
Joined: Wed Oct 04, 2006 1:49 pm

RE: 12% Stake In IAG For Sale

Thu Jun 27, 2013 3:14 am

Quoting Markam (Thread starter):
Who do you think could likely be interested in buying this stake?

SRB or MOL?   
Follow me on twitter for YVR movements @vernonYVR
 
Summa767
Posts: 1756
Joined: Thu Mar 11, 2004 1:30 am

RE: 12% Stake In IAG For Sale

Thu Jun 27, 2013 6:46 am

Quoting Markam (Reply 4):
Bankia, a Spanish bank, has been in dire straits for a while, so they are looking at divesting non-core investments. That is why they have put their stake in IAG up for sale, I do not think that it has to do with IAG's or IB's situation at all.

Absolutely right. The bank had to be rescued.
At least they will get more from their stake in IAG than if they were only selling IB shares.
 
r2rho
Posts: 2441
Joined: Tue Feb 27, 2007 10:13 pm

RE: 12% Stake In IAG For Sale

Thu Jun 27, 2013 8:22 am

And sold:
http://www.elmundo.es/elmundo/2013/06/27/economia/1372316462.html

Seems that it was already previously tied up since only hours have passed between the announcement and the sale. They have been sold to "qualified professional investors".

Quoting Markam (Reply 4):
Bankia, a Spanish bank, has been in dire straits for a while, so they are looking at divesting non-core investments. That is why they have put their stake in IAG up for sale, I do not think that it has to do with IAG's or IB's situation at all.

Agree. Bankia being a bailed-out bank is being forced to sell their assets quickly, no matter to whom or at what price. They have sold at 3.01EUR so more or less around the current share price, nevertheless a 167million profit respect to what it cost them in 2000 & 2007.
 
Markam
Topic Author
Posts: 318
Joined: Sun Jan 13, 2008 6:17 am

RE: 12% Stake In IAG For Sale

Thu Jun 27, 2013 2:05 pm

Quoting r2rho (Reply 8):
And sold:
http://www.elmundo.es/elmundo/2013/06/27/economia/1372316462.html

Seems that it was already previously tied up since only hours have passed between the announcement and the sale. They have been sold to "qualified professional investors".

Thank you for the update, does anyone have more information on who are these "qualified professional investors"? The Financial Times has also run a news piece on this, however they do not mention who is the buyer, either:

http://www.ft.com/cms/s/0/4d1f8dd2-d...1f-00144feab7de.html#axzz2XQQ9cgmf
 
vv701
Posts: 5780
Joined: Fri Aug 19, 2005 10:54 am

RE: 12% Stake In IAG For Sale

Thu Jun 27, 2013 2:49 pm

Here is a link to the Bloomberg report on the placing.

http://www.bloomberg.com/news/2013-0...take-in-british-airways-owner.html

Quoting Markam (Reply 9):
does anyone have more information on who are these "qualified professional investors"?

A "placing" usually indicates an offer for sale to numerous financial institutions at a specified but usually discounted price. In this instance the discount Bankia have had to give seems to be relatively small at only 3 per cent below the quoted market price. The institutions buying the shares are likely to be a mix of investors such as unit trusts , insurance companies and pension trustees.
 
Markam
Topic Author
Posts: 318
Joined: Sun Jan 13, 2008 6:17 am

RE: 12% Stake In IAG For Sale

Thu Jun 27, 2013 3:20 pm

Quoting VV701 (Reply 10):
A "placing" usually indicates an offer for sale to numerous financial institutions at a specified but usually discounted price. In this instance the discount Bankia have had to give seems to be relatively small at only 3 per cent below the quoted market price. The institutions buying the shares are likely to be a mix of investors such as unit trusts , insurance companies and pension trustees.

I see, thanks for the information! I imagine that Bankia just wanted to get their money as soon as possible and in any case institutional investors are standard in the industry, but as mentioned I think that another OW partner, such as AA or QR may have been a more desirable investor from IAG's point of view.   
 
skystar767
Posts: 70
Joined: Fri Jun 14, 2013 8:11 pm

RE: 12% Stake In IAG For Sale

Thu Jun 27, 2013 11:56 pm

Would be funny if Delta buys the 12% shares of IAG  
 
Markam
Topic Author
Posts: 318
Joined: Sun Jan 13, 2008 6:17 am

RE: 12% Stake In IAG For Sale

Fri Jun 28, 2013 12:32 am

Another news piece in the Spanish media mentions that El Corte Inglés, a Spanish department store chain, has also sold its 1.8% state in IAG, and that this means that now the only major Spanish investor in the airline group is the Spanish government (2.7% stake).

http://www.elmundo.es/elmundo/2013/06/27/economia/1372356070.html (Spanish only)

[Edited 2013-06-27 17:40:54]