SInGAPORE_AIR
Posts: 11619
Joined: Mon Nov 13, 2000 4:06 am

5 Bids For AI Dumped.

Sun Dec 17, 2000 12:25 am

Have no idea what the hell this means so here goes. Maybe someone can explain.

Five Air India bidders rejected
The Hindu - India; Dec 16, 2000
BY OUR SPECIAL CORRESPONDENT



NEW DELHI, DEC. 15. The Disinvestment Ministry has rejected five bidders for strategic partnership for Indian Airlines (IA) and Air India (AI) after completion of scrutiny of bids today. In the case of AI, three parties, including the Indian Pilot's Guild, were dropped while two bidders were disqualified from the IA bid.

The shortlisted bidders have now been asked to submit technical bids by January-end and to start the process of due diligence immediately thereafter. The Hindujas, Tata-Singapore Airlines and Videocon are among the major contenders for becoming strategic partners either in Indian Airlines or Air India or both, according to sources in the Ministry. These sources indicated that the five bidders were dropped for not fulfilling all conditions laid down by the Government, including the criterion of having a combined net worth in excess of Rs. 1,000 crores or $ 250 million.

The sources also indicated that around eight bidders were in the race for buying 40 per cent stake in AI while another five were seeking 26 per cent in IA.

On the reported suggestion from AI's global advisors that fresh bids be invited, the sources said the response had been very good and there was no such consideration.

The Government would now allow identified parties to proceed with due diligence by allowing entry into the data room along with obtaining necessary information from the bidders. On the rejection of bid of the Indian Pilot's Guild, sources said there was no documentary evidence that the Guild had the support of all the employees of Air India.

The Guild also failed to submit an audited balance sheet with the bid document, a prerequisite for taking part in the bidding process.

The Government also rejected the Guild's contention that it was capable of raising the stipulated Rs. 1,000 crores from their own resources including withdrawal from their provident fund accounts.

As per Government regulations, withdrawals for investment purposes like purchase of equity shares was not a ground for permitted withdrawal of the fund.


Copyright © Asia Intelligence Wire

Anyone can fly, only the best Soar.
 
SInGAPORE_AIR
Posts: 11619
Joined: Mon Nov 13, 2000 4:06 am

RE: 5 Bids For AI Dumped.

Sun Dec 17, 2000 12:32 am

Found another clearer article:

India disqualifies 3 bids for Air India, 2 for Indian Airlines
AFX Europe; Dec 15, 2000



The government said in a statement that it has disqualified three bids for the sale of its stake in Air India and 2 bids for Indian Airlines as they did not meet the qualification criteria.

It did not name the bidders whose bids were disqualified but said the relevant companies or consortia did not have a net worth of 10 bln rupees or 225 mln usd required to qualify for bidding.

Government sources said the Indian Pilot Guild's bid has been disqualified while the Tata-Singapore Airlines combine is among the shortlisted bids.

Other bidders for Air India include Dubai's Emirates, Groupe Air France along with Delta Air Lines Inc, non-resident Indian businessman L N Mittal and the Hinduja group, they added.

The government is selling a 40 pct stake in Air India and a 26 pct stake in Indian Airlines.

It has asked shortlised parties to submit initial technical proposals including the composition of the bidding consortium and business plans by end-Jan, the statement said.

Confidentiality agreements have been issued to the short-listed companies and they are required to sign them within a week.

After the signing "a bid-pack consisting of information memorandum, initial draft agreements and request for proposals would be issued," it said.

The statement also did not disclose the names of shortlisted companies.

ra/ams/vt


World Reporter All Material Subject to Copyright
Anyone can fly, only the best Soar.
 
B747-437B
Posts: 8777
Joined: Thu May 30, 2002 6:54 am

RE: 5 Bids For AI Dumped.

Sun Dec 17, 2000 1:59 am

My sources within AI will confirm that the SQ/Tata and the DL/AF bid are the only two still on the table.
"The A340-300 may boast a long range, but the A340 is underpowered" -- Robert Milton, CEO - Air Canada
 
Guest

RE: 5 Bids For AI Dumped.

Sun Dec 17, 2000 9:19 am

Air India and Malaysia Airlines would be two huge boosts for SkyTeam.

Sean if SQ wins, does this mean a new Star Alliance addition?

Its almost possible that SQ could really start their own little alliance: Singapore, Ansett, Air New Zealand, Virgin...
 
Guest

RE: 5 Bids For AI Dumped.

Sun Dec 17, 2000 9:46 am

Hello,

Is Emirates airlines anyways associated with Singapore airlines (its not regarding the Air India purchase), I was pretty sure I read or heard somewhere that they had some kind of connection. Thanks in advance for any help.

bLuJaay
 
IndianGuy
Posts: 3126
Joined: Fri Jul 07, 2000 3:14 pm

RE: 5 Bids For AI Dumped.

Sun Dec 17, 2000 1:07 pm

I also hear that the Indian Pilots Guild, the union of AI pilots are planning to go to court if their bid is rejected.

Apparently, they feel that the government criteria of first looking at "Groos Value" of the investor is unfair.

"No company is going to invest its gross value in AI" one of the pilots told a TV channel. "But the pilots are putting their Provident Funds to come up witht the 1000 crores". apparently He meant to say that they were more serious than any other party since their lifes savings were at stake.

Also the pilots said that they were the ONLY bidder to submit a detailed business plan. Hence they feel that the Govt. dec. is arbitrary and unfair. Some even are saying that whole AI divestment process is "FIXED".

The DL/AF teams chances are suddenly rated as being very high which is surprising since nobody in the Govt gave them any chance even 2 weeks ago. The anti-Tata lobby seems to be at work again!
 
B747-437B
Posts: 8777
Joined: Thu May 30, 2002 6:54 am

RE: 5 Bids For AI Dumped.

Sun Dec 17, 2000 3:29 pm

Russell - SQ and STAR are a divorce waiting to happen.

Roy - I'm off to NYC tomorrow and flying back to India on a flight operated by a couple of IPG bigwigs. They will have all the gossip undoubtedly, especially if I have to jumpseat all the way home which looks likely considering the loads.
"The A340-300 may boast a long range, but the A340 is underpowered" -- Robert Milton, CEO - Air Canada
 
nycank
Posts: 232
Joined: Mon May 29, 2000 6:47 pm

RE: 5 Bids For AI Dumped.

Sun Dec 17, 2000 6:00 pm

DL/AF are incapable of bringing much to the table. At best they will be
able to garner 26 % of the share. Not having a local partner for the
other 14 % hurts.

 
SInGAPORE_AIR
Posts: 11619
Joined: Mon Nov 13, 2000 4:06 am

RE: 5 Bids For AI Dumped.

Sun Dec 17, 2000 6:02 pm

Why are the lovely Singapore Airlines and the glamorous Star Alliance going to divorce? Get Real!
Anyone can fly, only the best Soar.
 
B747-437B
Posts: 8777
Joined: Thu May 30, 2002 6:54 am

RE: 5 Bids For AI Dumped.

Sun Dec 17, 2000 9:44 pm

Singapore_Air wrote:
-------------------------------
Why are the lovely Singapore Airlines and the glamorous Star Alliance going to divorce? Get Real!


Ah.... I love it when an argument escalates to this level.  

I can think of about 10 reasons why SQ and STAR should divorce - and I'm willing to put money down that it will happen by 2004 (I've posted the reasons in detail on another AI thread, so run a search and read it). Any takers?
"The A340-300 may boast a long range, but the A340 is underpowered" -- Robert Milton, CEO - Air Canada
 
SInGAPORE_AIR
Posts: 11619
Joined: Mon Nov 13, 2000 4:06 am

RE: 5 Bids For AI Dumped.

Sun Dec 17, 2000 10:21 pm

Well I can't find it so you must be lying!
Anyone can fly, only the best Soar.
 
B747-437B
Posts: 8777
Joined: Thu May 30, 2002 6:54 am

RE: 5 Bids For AI Dumped.

Sun Dec 17, 2000 11:45 pm

Uh huh

Sorry I lied....

Jeez  
"The A340-300 may boast a long range, but the A340 is underpowered" -- Robert Milton, CEO - Air Canada
 
IndianGuy
Posts: 3126
Joined: Fri Jul 07, 2000 3:14 pm

RE: 5 Bids For AI Dumped.

Tue Dec 19, 2000 1:40 pm

according to todays Indian Express:

Tatas/SQ and the Hindujas have been shortlisted for BOTH Air India and Indian Airlines.

The DL/AF combine has also been shortlisted for AI, but some clarifications have been sought for them.

In addition, the Dhoots groups (TV and Home Applicances company Videocon International) have also been shortlisted for Indian Airlines. Apparently, the ministry bosses are maha-impressed with the Dhoots plans for IC (which include doubling the fleet, and bringing down fares by as much as 30%!).

The surprise incl. are the Hindujas. I didnt expect them to be shortlisted considering the "Gandhi" connection. Or perhaps this is the way the Govt. wants to buy the the Congress party's silence. The Opposition is sure to raise hell over the divestment.

I really hope that the Tatas get thru for AI and the Dhoots for IC.
 
B747-437B
Posts: 8777
Joined: Thu May 30, 2002 6:54 am

RE: 5 Bids For AI Dumped.

Thu Dec 21, 2000 3:30 am

Roy - I have some mega gossip that will probably interest you about the AI deal ref : the IPG bid. I jumpseated last night JFK-LHR and got all the low down dirt on the process. Will email you once I get to BOM.
"The A340-300 may boast a long range, but the A340 is underpowered" -- Robert Milton, CEO - Air Canada
 
IndianGuy
Posts: 3126
Joined: Fri Jul 07, 2000 3:14 pm

RE: 5 Bids For AI Dumped.

Thu Dec 21, 2000 3:51 am

In todays Economic Times, the IPG guys spoke about talking to their consultants about talking legal action.

Hope this doesnt delay the process.

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