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LAXintl
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Qatar Airways considers buying Lufthansa stake

Mon Dec 02, 2019 4:57 pm

Qatar Airways is considering taking a stake in Germany’s Lufthansa, its chief executive Akbar al-Baker was quoted as saying by German news agency dpa.

“If there is an opportunity to invest in Lufthansa, we would like to do it,” Akbar Al-Baker told dpa in Doha on Sunday on the sidelines of a visit of the premier of regional state Lower Saxony, Stephan Weil, to Qatar.

Initially, Qatar Airways would also look into a partnership with Lufthansa, Al-Baker was quoted as saying.



Qatar Airways considers buying Lufthansa stake
https://www.reuters.com/article/lufthan ... SL8N28C11Z

=

From an investment point of view, probably a solid move.

Some might remember during early QR days they had a commercial partnership with LH, and also QR was built on LH knowhow including IT infrastructure supplied by LH Systems.
From the desert to the sea, to all of Southern California
 
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mercure1
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Re: Qatar Airways considers buying Lufthansa stake

Mon Dec 02, 2019 11:17 pm

Be funny turn of events for LH who continues to bad mouth ME3 and while trying hard to restrict access to German market.

Would competition authorities have any concern with QRs existing investment in IAG?
mercure f-wtcc
 
maxkd
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Joined: Tue Sep 18, 2018 7:36 pm

Re: Qatar Airways considers buying Lufthansa stake

Mon Dec 02, 2019 11:30 pm

Would make QR's entry into Star Alliance a tiny bit smoother... No hiding the fact they are disinterested in continuing with OW.
 
Qazar
Posts: 193
Joined: Sat May 20, 2006 4:18 am

Re: Qatar Airways considers buying Lufthansa stake

Tue Dec 03, 2019 12:53 am

Would never happen!!!... Although if it ever did, LH would probably benefit from lower fuel costs and really deep pockets to sustain growth!
 
CALMSP
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Re: Qatar Airways considers buying Lufthansa stake

Tue Dec 03, 2019 4:01 am

maxkd wrote:
Would make QR's entry into Star Alliance a tiny bit smoother... No hiding the fact they are disinterested in continuing with OW.


no way would they join Star Alliance. QR simply is looking to find ways to make money since they can't run an airline on their own.
 
TWA85
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Re: Qatar Airways considers buying Lufthansa stake

Tue Dec 03, 2019 4:13 am

Lufthansa reportedly not interested in an investment by Qatar Airways.

https://www.arabnews.com/node/1592731/business-economy
 
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LAX772LR
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Re: Qatar Airways considers buying Lufthansa stake

Tue Dec 03, 2019 6:29 am

I've been saying forever that it's going to be funny when DL, AC, and LH each have joint venture with one or more of the ME3 someday.

Still saying it now.... watch.
I myself, suspect a more prosaic motive... ~Thranduil
 
Blerg
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Re: Qatar Airways considers buying Lufthansa stake

Tue Dec 03, 2019 8:12 am

I think this is just for PR. Remember some years ago they made the same offer to AA.
 
xiaotung
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Re: Qatar Airways considers buying Lufthansa stake

Tue Dec 03, 2019 8:29 am

He has said publicly that his airline first approached Star Alliance for membership as his preferred choice of alliance but Star did not want him. This is probably another stunt to show his dissatisfaction towards oneworld now that they have lost Latam.
 
J343
Posts: 277
Joined: Sun Jan 13, 2008 3:40 am

Re: Qatar Airways considers buying Lufthansa stake

Tue Dec 03, 2019 11:21 am

I personally do not see this happening. Considering EY is forging a partnership with LH and most Star Alliance carriers. There were several articles months ago regarding EY showing an interest in partnering with UA and the LH group and possibly joining Star Alliance. Not to mention, BA-QR and to a lesser extent IB have a very close relationship.
 
stylo777
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Re: Qatar Airways considers buying Lufthansa stake

Tue Dec 03, 2019 1:32 pm

I don't know how this exactly works, but aren't they able to just go ahead and buy LH shares on the market since LH is listed on the stock markets?
As per their Investor Relations page 475.2 mill. shares are on the market, 100% free float with 53% institutional and 47% private investors (2018 figures)
https://investor-relations.lufthansagro ... -data.html
5% with todays' shareprice would equal to something around 400 mill. EUR.

but I'm sure that the calculation as well as the legal aspects aren't so simple :)
 
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SCFlyer
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Re: Qatar Airways considers buying Lufthansa stake

Tue Dec 03, 2019 1:40 pm

Tipping that this is false news with nothing coming out of it. QR has a history of this, per the older article with AA.

This news article is probably up there with the annual (once per year) yearly "SQ to take over VA" news article rumours and the "So Called Saviour SQ" reviews out of those articles which is also 'fake news'
 
airbazar
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Re: Qatar Airways considers buying Lufthansa stake

Tue Dec 03, 2019 1:43 pm

TWA85 wrote:
Lufthansa reportedly not interested in an investment by Qatar Airways.

https://www.arabnews.com/node/1592731/business-economy

It's not up to Lufthansa to decide. LH is a publicly traded company. If QR makes a stupid offer for LH shares someone will sell.
 
raylee67
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Re: Qatar Airways considers buying Lufthansa stake

Tue Dec 03, 2019 2:42 pm

airbazar wrote:
TWA85 wrote:
Lufthansa reportedly not interested in an investment by Qatar Airways.

https://www.arabnews.com/node/1592731/business-economy

It's not up to Lufthansa to decide. LH is a publicly traded company. If QR makes a stupid offer for LH shares someone will sell.


Yes and no... QR cannot buy controlling stakes of LH. If QR owns more than 50% of LH, LH would not be seen as a EU carrier legally. While QR can buy in the open market, it would just be like any average investors buying stocks. It would be similar to how QR bought 10% of CX. Swire and Air China never endorsed it, and QR bought those shares in the open market.

Swire and Air China did not even open up a seat in the Board for QR although it owns 10% of CX. Basically Swire and Air China just ignore QR and see it as a large institutional investor, like a fund.

If QR invests in LH the same way by simply buying shares in the open market, LH would probably do the same to QR like CX did. To get LH's co-operation, QR will need to persuade the other shareholders (even though they own less than the amount QR has, they collectively would still own a lot more) to align with QR's vision. Just buying a lot of shares in the open market is not enough.
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Zyklotrop
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Re: Qatar Airways considers buying Lufthansa stake

Tue Dec 03, 2019 3:35 pm

airbazar wrote:
TWA85 wrote:
Lufthansa reportedly not interested in an investment by Qatar Airways.

https://www.arabnews.com/node/1592731/business-economy

It's not up to Lufthansa to decide. LH is a publicly traded company. If QR makes a stupid offer for LH shares someone will sell.


Wrong. LH shares are registered shares with restricted transferability. Any acquistion needs the consent of LH itself.
 
Milka
Posts: 164
Joined: Wed Mar 24, 2010 7:45 pm

Re: Qatar Airways considers buying Lufthansa stake

Tue Dec 03, 2019 6:00 pm

Nothing more than Al-Baker would love to do, buy a stake in LH just to piss them off. Don't think LH will ever allow that to happen though.
 
airbazar
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Joined: Wed Sep 10, 2003 11:12 pm

Re: Qatar Airways considers buying Lufthansa stake

Tue Dec 03, 2019 6:16 pm

raylee67 wrote:
airbazar wrote:
TWA85 wrote:
Lufthansa reportedly not interested in an investment by Qatar Airways.

https://www.arabnews.com/node/1592731/business-economy

It's not up to Lufthansa to decide. LH is a publicly traded company. If QR makes a stupid offer for LH shares someone will sell.


Yes and no... QR cannot buy controlling stakes of LH. If QR owns more than 50% of LH, LH would not be seen as a EU carrier legally. While QR can buy in the open market, it would just be like any average investors buying stocks. It would be similar to how QR bought 10% of CX. Swire and Air China never endorsed it, and QR bought those shares in the open market.

Swire and Air China did not even open up a seat in the Board for QR although it owns 10% of CX. Basically Swire and Air China just ignore QR and see it as a large institutional investor, like a fund.

If QR invests in LH the same way by simply buying shares in the open market, LH would probably do the same to QR like CX did. To get LH's co-operation, QR will need to persuade the other shareholders (even though they own less than the amount QR has, they collectively would still own a lot more) to align with QR's vision. Just buying a lot of shares in the open market is not enough.


Entirely correct which is why I never said anything about QR taking a controlling stake in LH. If QR wants to go our and buy LH shares strictly as a financial investment they are free to do so. And it wouldn't be a bad thing to do. Many people think that LH's shares are under valued currently.

Zyklotrop wrote:
Wrong. LH shares are registered shares with restricted transferability. Any acquistion needs the consent of LH itself.

That is not the purpose of the registered shares. Registered shares exists solely to supervise foreign ownership.
"As long as the percentage of foreign shareholders falls sufficiently short of 50 per cent, Lufthansa will not intervene in share trading."
https://investor-relations.lufthansagro ... tures.html
If LH were to block the deal I suspect they would have a lot to explaining to do to the rest of their share holders.
 
Heinkel
Posts: 234
Joined: Sun Sep 08, 2013 6:15 pm

Re: Qatar Airways considers buying Lufthansa stake

Tue Dec 03, 2019 6:19 pm

Zyklotrop wrote:
airbazar wrote:
TWA85 wrote:
Lufthansa reportedly not interested in an investment by Qatar Airways.

https://www.arabnews.com/node/1592731/business-economy

It's not up to Lufthansa to decide. LH is a publicly traded company. If QR makes a stupid offer for LH shares someone will sell.


Wrong. LH shares are registered shares with restricted transferability. Any acquistion needs the consent of LH itself.


I lost more than 30% on my Lufthansa shares. If Al-Baker makes a decent offer, I'll sell at once. I think many Lufthansa shareholders are not happy with their shareholder value during the last year.

Lufthansa shares are quite cheap at the moment. So good chance for an unfriendly takeover.

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