Bishop goes to court to force Lufthansa to complete BMI buy
Thursday 21 May 2009
Sir Michael Bishop, the chairman of BMI British Midland, launched High Court proceedings against Lufthansa yesterday to try to force the German airline to complete its purchase of BMI.
In 1999, Sir Michael signed a deal with Lufthansa for the sale of BMI over a 10-year period. The contract is now due, but a row has erupted over whether the terms have been met.
The Lufthansa chief financial officer, Stephan Gemkow, said in a newspaper interview this week that BMI's troubled finances were a problem and that Sir Michael could be required to inject more cash. But BMI claims that all the necessary regulatory and commercial conditions are in place, and Sir Michael has gone to the courts to force Lufthansa's hand.
A spokesman for Lufthansa said: "Of course we are involved with the BMI integration, but there appears to be a discrepancy over whether all the criteria have been met." Sir Michael owns 50 per cent plus one share of the UK carrier. Lufthansa already owns nearly 30 per cent and is to buy Sir Michael out for about €400m (£351m). The remaining 20 per cent is owned by SAS, the Scandinavian airline. Last year, BMI made annual losses of about £100m.
- 1 Finland schools: Subjects scrapped and replaced with 'topics' as country reforms its education system
- 2 The West has it totally wrong on Lee Kuan Yew
- 3 Watch: Man takes selfie every mile of 2,600 mile hike, creates amazing timelapse video
- 4 #FreeTheNipple: Women in Iceland bare breasts in solidarity with trolled student
- 5 Scientists have discovered a simple way to cook rice that dramatically cuts the calories
Germanwings captain Patrick Sondenheimer tried to break into locked cockpit door 'with an axe' as plane was descending
Amanda Knox murder conviction: Italian court overturns verdict for US student and Raffaele Sollecito in the killing of Meredith Kercher
Saudi Arabia says it won't rule out building nuclear weapons
The battle for the Middle East's future begins in Yemen as Saudi Arabia jumps into the abyss
Jeremy Clarkson 'could be given minder' ahead of a potential Top Gear return
Nigel Farage brands LGBT activists 'filth' and 'scum' and accuses them of scaring away his children after they invade his local pub
Ukip supporters are 55 or older, white and socially conservative, finds British Social Attitudes Report
JK Rowling responds to fan tweeting she 'can't see' Dumbledore being gay
Russia threatens Denmark with nuclear weapons if it tries to join Nato defence shield
Jeremy Clarkson sacked live: Alan Yentob 'wouldn't rule out' ex Top Gear host's BBC return
Germanwings plane crash: Co-pilot Andreas Lubitz wanted to 'do something people would remember him for'
iJobs Money & Business
Negotiable: Recruitment Genius: To provide a prompt, friendly and efficient se...
Negotiable: Recruitment Genius: You will be the first point of contact for all...
£18000 - £24000 per annum + benefits: Ashdown Group: HR, Payroll & Benefits Of...
£35000 - £38000 per annum + benefits : Ashdown Group: A highly successful, int...