Virgin heats up BMI battle
A curveball play from Virgin Atlantic could thwart British Airways' acquisition of Castle Donington-based BMI, according to reports.
Sir Richard Branson's company has signed a "terms of agreement" contract with BMI's German owner Lufthansa, keeping it in the takeover game.
After agreeing a deal with British Airways' parent company IAG for the purchase of BMI earlier this year, the German airline is now said to have been persuaded to accept due diligence for a rival offer from Virgin.
The books of BMI have been opened to both carriers and their proposals "have an equal chance of success", a Lufthansa spokeswoman told reporters.
Although the offer from Branson's company is reported to be significantly lower than IAG's, it is thought Branson is hopeful that his ability to seal a deal quickly without the antitrust regulatory review which would accompany an IAG bid could swing Lufthansa in its favour.
Reports have suggested that IAG's successful offer was in the region of £100m, while Branson's is thought to stand at about £50m. Neither party has confirmed this.
Lufthansa announced it would put BMI on the market earlier this year after the subsidiary failed to make a profit in its year-end results. Its lucrative Heathrow slots were said to be the reason behind the bidding war which ensued.
