|Quoting Rivet42 (Reply 14):|
Same with IB - there's nothing LH can do until BA decide whether to exercise their right-to-buy options, or not, and even if they decide not to buy, BA will still have a significant holding in IB that LH cannot just bully them into selling...
I'm not too sure about this, but I believe that BA
has right of first refusal over its 10% shareholding in IB
... This means that when a valid offer is made to purchase IB
by another company (LH), BA
automatically gets the first bid (the privilege if you want to consider it) to make an offer as well.
For example, if LH
made an offer to purchase IB
shares for 4Euros a pop, then BA
automatically gets a grace period to present an equivalent or better offer. If they do, the BA
offer will be the one selected even if it came in after the LH
one. But if BA
doesn't make an offer, or if its offer is less attractive to the remaining shareholders than the LH
one, the LH
offer is selected and BA
has no choice but to sell its shares... "Right of first refusal" has its privileges, but also its downsides.
Let's face it, the LX
take-over went incredibly smooth and aside from a few glitches here and there, the incorporation of both airlines into one corporate culture was exemplary. There are a lot of opportunities in the European market right now, and LH
's cash reserves are very a good indication that the airline is actively seeking these opportunities.
For years LH
has been actively screaming that the market is is desperate need for mergers and acquisitions. In order to continue competing against the likes of Ryanair, Easyjet, and all the other LCCs (that keep popping up bases all over Europe regardless of their country of origin) the likes of LH
must adopt strategies to access the big markets all over Europe and not be restricted to just their home markets... The Alliances were a good start, but they don't allow airlines like LH
to capitalize on routes such as Scandinavia-Thailand, Poland-USA, Austria-CIS, or Spain-Latin America.
We are entering the age of acquisitions... finally!!!