SAS to sell stakes in BMI and Spanair

SAS have no confirmed that they are selling their stakes in both Bmi and Spanair.

Spanair looks to be falling into the hands of LH as they continue to make themselves a European airline rahter than a national airline.

A stake in Bmi of course has started up the Virgin rumours yet again although it looks like LH could further increase its stake in Bmi. Will be interesting considering that LH tried to offload BD in 2000.

Interesting. But who in their right mind would want a 20% stake in BD? My guess is that SAS is in league with LH to try and flush out a potential purchaser of the whole of BD as a competitor to The Ginger-Bearded One. We'll see.

""But who in their right mind would want a 20% stake in BD?" Is BMi really that bad a proposition?? I'd have thought with their LHR slots & the "open sky" policy BMi would be very appealing!!!!"

Yes, I agree with you. BMI is a very appealing purchase, but I was questioning who would want to own 20%. No management control, no voting control (except for any power of veto in the shareholder's agreement), no dividends, in fact no control over one's investment at all. The only merit in such a purchase would be as a defensive manoeuvre to prevent another airline owning that 20%.
Bishop and LH probably have pre-emption rights over the 20%, but as Bishop already has 50% plus one share why would he want another 20% unless he thought he could turn the lot at a profit quickly and LH have 30% less 1 share, so why would they want to increase to 50% less 1 share? They probably can't afford it anyway.

I wouldn't have thought Bishop would take up the extra 20% (looks like he wants control with as little a stake as possible) and LH wouldn't really benefit from the 20%. TBH, I can't see there being that much interest in the share but you never know...

45.