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Lufthansa gets cold feet over BMI
22 May 2009
The German carrier wants BMI to inject more money into the struggling airline amid fears it could walk away from the deal, as BMI chairman Michael Bishop issues legal proceedings.
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[Lufthansa]
[BMI]
[Austrian]
[Competition Commission]
[European Commission]
[Michael Bishop]
German flag carrier Lufthansa could pull out of the deal to takeover BMI unless the struggling British carrier injects more money into the airline.
The warning from Lufthansa, which is concerned about BMI’s mounting losses, has pushed its chairman Michael Bishop to go to the high court in an effort to force through the deal. He claims that BMI has fulfilled its part of the agreement and has hired law firm Linklaters as a precautionary measure.
Bishop’s BBW group holds 50% plus one share in BMI. Lufthansa owns 30% of the airline and, under the terms of a deal originally arranged over ten years ago, will increase its...
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