Originally Posted by
NYTA
FIMI has been the most successful P.E. fund in Israel over the last several years. They are not "Fryarim". The only question is whether they will try to do what TPG did with Continental and turn things around or will try to milk it for the money at the further expense of customer service.
NYTA,
Very good question. I read numerous reports about this acquisition and am perplexed as to why they are going to pay a significant premium to acquire Borovich's shares in LY. This leads me to believe that they believe the company is undervalued despite its massive debt load, inefficiencies, poor financial performance, and need for significant capital investment in new a/c and hard product. Whether they invest the full $60 million or not is dependent upon a deal involving significant union givebacks, which is highly unlikely. What is troubling is that that no discussion was made about reducing management and its redundancies. It's all up in the air, but looks like the airline is going to be saved, for now.