bmi takeover?

Personally, I would have a thought that a break up of the company would yield the most value. British Midland has always struck me as a business where the sum of the parts is greater than the whole.

> BMI Regional would nicely augment flyBE or Eastern
> BMI Mainline would allow a Full Service Carrier to have a crack at BA on its own turf
> BMI Baby would fit in well with Jet2, easyJet, Ryanair or practically any other Low Cost Carrier

Time’ll tell, as I can remember 15 years ago it being suggested that Sir Michael Bishop was building up the business to sell it and 15 years later here’s still here.

Regards

John

They don’t need to ditch either name do they ? Air France and KLM didn’t…

I am told that either side wanted to keep its own name without alterations to ensure no customer confusion. That led to talks break down in early stages.

virgin and bmi dont roll of the tounge easily together IMHO.

They held actual meetings to discuss the potential of it. I understand it broke up quickly when neither side would let their name dissappear and want the other to dissappear. Two very strong willed guys up front there….

They don’t need to ditch either name do they ? Air France and KLM didn’t…

I’d have thought this news would cause Sir Richard Branson to prick up his ears ? After all, it’s already been reported his interest in merging Virgin Atlantic with BMI.

They held actual meetings to discuss the potential of it. I understand it broke up quickly when neither side would let their name dissappear and want the other to dissappear. Two very strong willed guys up front there….

However, DLH seem to be interested in Iberia right now and also Alitalia, so, may not be so interested in BMI I’m led to believe.

In last weeks Mail On Sunday it said BA Chief Willie Walsh admits he is ready to bid £2.4 Billion for the Spainish airline Iberia If other airline’s approach to buy IB.?

James

I’d have thought this news would cause Sir Richard Branson to prick up his ears ? After all, it’s already been reported his interest in merging Virgin Atlantic with BMI.

If Sir Michael Bishop were to relinquish BMI to BA, you’d have to imagine it would spell the end of another classic name in UK commercial aviation, along the lines of the way British Caledonian was handled when Sir Adam Thompson decided to ‘sell up’.

Not so simple I think… I’m pretty certain that anti-competition rules would put some pretter large obstacles in the way of a BA takeover of BMI, whilst I suspect that [for example] SRB would find it somewhat easier were he interested.

Andy

Indeed i think any muppet can see VIR and BMA fit better together than BAW and BMA IMHO. I think VIR and to an extent BMA go for a quality of service approach especially for business etc.

Im not saying BA does not go for quality but VIR and BMA, at least to me, have a more unique/customer care feel to them.

They don’t have to “plot” anything. All BA has to do so is make Sir Michael a satisfactory offer.

Not so simple I think… I’m pretty certain that anti-competition rules would put some pretter large obstacles in the way of a BA takeover of BMI, whilst I suspect that [for example] SRB would find it somewhat easier were he interested.

Andy

However, DLH seem to be interested in Iberia right now and also Alitalia, so, may not be so interested in BMI I’m led to believe.

I think I see a story about a Bmi sell-off every year. Sir MB is 65 so I reckon it will be within 10 years.

Yes, that’s about right. For years it has been confident predictions from the financial scribblers that a stock market flotation was bound to occur within the next 12/18/24 months or that SAS, Lufthansa or an unnamed middle east airline was going to buy British Midland. Or, it was the recurring theme that Sir Richard would be the new owner, except he just seems to be a little short of the cash to complete the deal at the moment…..

The facts are:

SMB is Chairman of British Midland – that’s what he does, that’s what he is.
He is 65 and he will have to stop sometime.
When that “sometime” comes he will sell – but there is still the matter of the “Lufthansa first refusal”.
He might not bother and just leave it all to the D’Oyly Carte Opera Company.

Then again, BA might just offer him the chairmanship, there’s a thought!

Lord King would have a good chuckle about that.

exmpa

I think I see a story about a Bmi sell-off every year. Sir MB is 65 so I reckon it will be within 10 years.

plotting a billion-pound takeover of bmi

They don’t have to “plot” anything. All BA has to do so is make Sir Michael a satisfactory offer. British Midland Airways (bmi is the brand) is a private company, it’s not a case of buying shares on the stockmarket, you have to buy them from the principals. In this case Lufthansa, SAS and Sir Michael Bishop. Inconveniently SMB holds 50% plus 1 share, so in the end it’s up to him and him alone.

Look at it this way; SMB is “Sir Michael Bishop Chairman of British Midland”. If he sells then he’s just another rich geezer. One day he will realise his assets, but is this the day? You would have to ask him.

exmpa

BMI Take over

Yes, heard it on the radio this morning. I wonder if its got anything to do with the deal reached between Europe and the U.S regarding an open skies policy. B.A. obviously want to protect its share of business on the transatlantic route, but if it does go ahead, what of the other routes BMI currently fly ? For example, will it mean the Leeds/Bradford-Heathrow route currently operated by BMI, be dropped ( B.A Pulled out of LBA years ago) ?? makes you wonder.