FlyerTalk Forums - View Single Post - NWA "passive investor" with Equity firm buying Air Midwest
Old Aug 12, 2007 | 11:59 pm
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RobOnLI
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Originally Posted by wldtrvlr
If that is the case than it would be a wise move by NW. Similar to moves they have made in the past with both KLM and CO. At one point KLM bought a minority stake in NW to help them stay afloat and then later sold it, after that NWA bought about 17% of CO stock partly to help them out, and partly to have control over proposed mergers of CO with other carriers. They both worked into very seamless Code shares without many concerns from the DOT. NWA has since sold its share in CO.
NW sold their stake in CO but retains one "golden share" in CO. This golden share basically says NW must approve or may block any potential takeover/buyout of CO from anyone else. Smart move on NW's part, especially with all of the rumors that UA wants to buy/merge with CO.

-RM
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