FlyerTalk Forums - View Single Post - Morgan Stanley Buys Up NW Stock - CO Golden Share Repercussions?
Old Feb 15, 2007 | 8:57 pm
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Originally Posted by J.Edward
That may not be the case. I believe a change of control at NW give CO the option of redeeming their share for $100.


“NW Change of Control” means:

(i) a merger, reorganization, share exchange, consolidation, tender or exchange offer, private purchase, business combination, recapitalization or similar transaction as a result of which...a Major Carrier, any of its Affiliates or any combination thereof acquires, directly or indirectly, Beneficial Ownership of 25% or more of the Capital Stock or Voting Power of a Northwest Affected Company.

Here's the source thread with the entire agreement.
As I read what you posted, there's no NW Change of Control, since no Major Carrier will own 25% or more of the Capital Stock or Voting Power of NW after it emerges from bankruptcy. If there is no change in control, the golden share can't go away, correct?

I don't think the full NW Change of Control provision in the linked post changes anything - essentially, there is only a NW Change of Control if NW is bought by (or in some cases buys) another airline, or sells its Trans-Pacific routes.
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