neilcorbett

MODERATOR'S EDIT:

This is the consolidated thread for discussion of the future ownership of bmi and what a change of ownership might mean for Diamond Club. It is a merge of several threads.

Some key points that have already been discussed in this thread:

• Bmi is privately owned, and therefore can be sold but not taken over
  
• Lufthansa currently owns 30% minus one share in bmi
  
• SAS is currently selling its 20% stake in bmi
  
• Lufthansa is a likely buyer of bmi, leading to speculation that Diamond Club could one day be replaced by Miles and More under LH ownership. Lufthansa has a call option to buy the share-holding of 50% plus one share between December 2008 and June 2009. In turn, the current holder of the largest single share, Sir Michael Bishop, has a valid put option to sell the stake (valued at £229 million when the original deal was concluded in 1999) to Lufthansa, exercisable until June 2009. It is not clear if the put will be exercised at the agreed price. And even if LH bought bmi from Sir Michael Bishop, it could sell it on again.
  
• There has been extensive discussion of a possible deal between Virgin and bmi
  
• BA has expressed "interest in bmi's future"
  
• The controlling bmi has finally been sold by SMB to LH; SAS retains its 20% for now
  
• SAS offloads its 20% to LH, with guaratees on a swetner if bmi is sold for a good price, and almost immediately a new, heavy hitter CEO is introduced leading to the belief that LH might try to make bmi viable - and a sale will come later or, perhaps, not at all, rather than immediate dismemberment
  
• New CEO takes office; LH quoted as having decided to not sell bmi for now, but to concentrate on turning it around
  
• LH/bmi IT dept. freaks out the community by posting M&M migration links on the website, causing brief panic; Diamond CLub subsequently announces a limited migration 'offer' in the Netherlands, Isreal and Georgia.

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I found an article on FT today that LH have got the banks involved in looking into acquiring the put option on SMB's 50% + 1 share stake in bmi

http://www.ft.com/cms/s/2/cdda4156-a...0779fd2ac.html

looks like its time to start using up those destinations miles...