Virgin Atlantic makes offer on bmi acquisition
12 Dec 2011
London: British airline Virgin Atlantic is now in a position to analyse the books of British carrier bmi after making an indicative offer and signing a "terms of agreement" contract with owner Lufthansa, according to report by The Times.
The report said the indicative offer from Virgin was lower than a recent offer made by International Airlines Group (IAG), owner of British Airways and Iberia.
According to sources cited by the report, Virgin is banking on being able to complete a deal quickly without the regulatory scrutiny that would accompany a merger with IAG. The report said Virgin's bankers were arguing that though lower priced, a quick deal was a better deal for Lufthansa, the owner of bmi.
The Virgin offer is thought to be in the region of 50 million pounds, while IAG's is about double that figure, excluding pension and restructuring costs, according to the report.
Lufthansa is expected to make a final decision on a buyer for its British subsidiary early in the new year, the reports said.
