Lufthansa moves in on Bmi
Tuesday, 23 Jun, 2009
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Lufthansa has paid £48 million through a UK holding company to take a majority stake in Bmi.
The move to acquire the 50% plus one share held by Bmi founder Sir Michael Bishop follows an out-of-court settlement in a dispute between the two over the shareholding.
As a result of what was described as a “compromise settlement” the German carrier is to pay £175 million.
Sir Michael’s share is held by holding company The BBW Partnership.
Following the agreement, the BBW stake will be acquired by LHBD Holding, a UK-based company in which Lufthansa will have a 35% stake. The deal is due to be completed by July 1.
After obtaining the necessary traffic rights, Lufthansa, which already owns 30% of Bmi, expects to be able to acquire 100% of LHBD.
“By this transaction, Lufthansa is expanding its interest in an airline whose strategic asset is its control of more than 11% of all the take-off and landing slots at London Heathrow, Europe’s largest airport,” a Lufthansa statement said.
“In recent years, however, bmi has experienced increasing financial challenges.
“These have been strongly exacerbated by the sharp rise in fuel prices in the past year and the ongoing global economic crisis.”
by Phil Davies
Phil Davies
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