IAG shares hit by Bankia worries
May 28, 2012, 4:18 am
#1
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IAG shares hit by Bankia worries
IAG shares suffered a bit of a write down in early trading as the LSE worried that troubled Spanish bank, Bankia, would sell their IAG holding to get cash onto their balance sheet.
At one point they were down nearly 4% at 136 or so, but have recovered to just 1% down currently.
An interesting example of how the way the effects of a toxic Euro may spread further afield.
At one point they were down nearly 4% at 136 or so, but have recovered to just 1% down currently.
An interesting example of how the way the effects of a toxic Euro may spread further afield.
May 28, 2012, 4:29 am
#3
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For the prices LSE.
For the reason behind the early markdown, my chap in HSBC PE. We are looking for speculative opportunities for the company's 'tickle' fund, and at one point this was the biggest FTSE100 faller - wish I had gone for it now
Also see here:
http://uk.finance.yahoo.com/news/mar...080022966.html
Interestingly this also talks about the Spanish Government being a potential seller.
For the reason behind the early markdown, my chap in HSBC PE. We are looking for speculative opportunities for the company's 'tickle' fund, and at one point this was the biggest FTSE100 faller - wish I had gone for it now
Also see here:
http://uk.finance.yahoo.com/news/mar...080022966.html
Interestingly this also talks about the Spanish Government being a potential seller.
May 28, 2012, 4:38 am
#4
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http://www.telegraph.co.uk/finance/f...owner-IAG.html
This was yesterdays article. I hope its of interest to any people.
This was yesterdays article. I hope its of interest to any people.
May 28, 2012, 6:24 am
#8
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I would have thought that the general economic position in Spain would be of more concern to IAG for future revenues than any issue with one shareholder.
The next one to watch for a fire sale has to include Ferrovial, owner of BAA, who borrowed that enormous amount to buy all those UK airports at an over-the-top price, and which, now they have been required to sell off quite a lot of the asset base, must be wondering what steps are next.
The next one to watch for a fire sale has to include Ferrovial, owner of BAA, who borrowed that enormous amount to buy all those UK airports at an over-the-top price, and which, now they have been required to sell off quite a lot of the asset base, must be wondering what steps are next.
Jun 22, 2012, 2:08 am
#9
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IAG chief receptive to rival buying Bankia stake
By Andrew Parker in London and Victor Mallet in Madrid
Financial Times June 19, 2012 10:09 pm
The boss of International Airlines Group has signalled he is receptive to another airline buying all or part of the stake in IAG held by Bankia, the part-nationalised and deeply troubled Spanish bank.
Willie Walsh, IAG’s chief executive, said an airline investor could be “positive” for the company, adding there was no “strategic value” to Bankia or the Spanish state being a shareholder.
Bankia is IAG’s largest shareholder, and analysts and bankers said the most plausible trade buyers for the bank’s 12 per cent stake would be fast-growing Gulf airlines, with some highlighting state-controlled Qatar Airways.
Mr Walsh in April praised Qatar Airways, which last year bought a 35 per cent stake in Cargolux, the Luxembourg-based cargo carrier.
IAG’s shares are suffering from an overhang, and have fallen 15 per cent since the beginning of May when speculation began mounting about a Spanish government rescue for Bankia, which is heavily exposed to bad property loans.
Last month the Spanish government took a 45 per cent stake in Bankia, as it converted €4.5bn of state aid into equity. The stake is due to increase to 90 per cent after the government agreed total aid of €23.5bn.
Bankia is widely expected to sell its IAG stake, worth Ł348m at the current market price, and Mr Walsh told Expansión, a Spanish newspaper, in an interview published on Tuesday that there were investors interested in buying the Spanish bank’s stake.
He went on to say that IAG did not rule out having an airline as an investor, which “could be positive if they are neutral” and did not interfere in the company’s management.
Mr Walsh added: “Having Bankia as a shareholder has no strategic value for IAG. Nor does having a government with a stake in the company.”
Another person close to IAG said the company would prefer not to have the Spanish state as a shareholder.
One person close to Etihad, the Abu Dhabi-based carrier that has bought minority stakes in Aer Lingus, Air Berlin and Virgin Australia since last year, played down the idea of it becoming a shareholder in IAG.
The person claimed Qatar Airways was a more likely investor in IAG. Qatar Airways declined to comment.
Akbar Al Baker, Qatar Airways’ chief executive, said last November that the company was interested in buying minority stakes in more airlines following the Cargolux deal.
“We will be interested in taking shares in carriers we feel have synergies with Qatar Airways and where we have potential to add value to them and they add value to Qatar Airways,” he added.
By Andrew Parker in London and Victor Mallet in Madrid
Financial Times June 19, 2012 10:09 pm
The boss of International Airlines Group has signalled he is receptive to another airline buying all or part of the stake in IAG held by Bankia, the part-nationalised and deeply troubled Spanish bank.
Willie Walsh, IAG’s chief executive, said an airline investor could be “positive” for the company, adding there was no “strategic value” to Bankia or the Spanish state being a shareholder.
Bankia is IAG’s largest shareholder, and analysts and bankers said the most plausible trade buyers for the bank’s 12 per cent stake would be fast-growing Gulf airlines, with some highlighting state-controlled Qatar Airways.
Mr Walsh in April praised Qatar Airways, which last year bought a 35 per cent stake in Cargolux, the Luxembourg-based cargo carrier.
IAG’s shares are suffering from an overhang, and have fallen 15 per cent since the beginning of May when speculation began mounting about a Spanish government rescue for Bankia, which is heavily exposed to bad property loans.
Last month the Spanish government took a 45 per cent stake in Bankia, as it converted €4.5bn of state aid into equity. The stake is due to increase to 90 per cent after the government agreed total aid of €23.5bn.
Bankia is widely expected to sell its IAG stake, worth Ł348m at the current market price, and Mr Walsh told Expansión, a Spanish newspaper, in an interview published on Tuesday that there were investors interested in buying the Spanish bank’s stake.
He went on to say that IAG did not rule out having an airline as an investor, which “could be positive if they are neutral” and did not interfere in the company’s management.
Mr Walsh added: “Having Bankia as a shareholder has no strategic value for IAG. Nor does having a government with a stake in the company.”
Another person close to IAG said the company would prefer not to have the Spanish state as a shareholder.
One person close to Etihad, the Abu Dhabi-based carrier that has bought minority stakes in Aer Lingus, Air Berlin and Virgin Australia since last year, played down the idea of it becoming a shareholder in IAG.
The person claimed Qatar Airways was a more likely investor in IAG. Qatar Airways declined to comment.
Akbar Al Baker, Qatar Airways’ chief executive, said last November that the company was interested in buying minority stakes in more airlines following the Cargolux deal.
“We will be interested in taking shares in carriers we feel have synergies with Qatar Airways and where we have potential to add value to them and they add value to Qatar Airways,” he added.
Jun 22, 2012, 2:46 am
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Jun 22, 2012, 3:02 am
#12
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Mmmmmmmmm interesting.
I wonder if the airline which bought the shares would have instant access to oneworld membership...
And I also wonder if Emirates would be interested at all...Would be nice to see both Qatar and Emirates bidding for the 12% shares...
I wonder if the airline which bought the shares would have instant access to oneworld membership...
And I also wonder if Emirates would be interested at all...Would be nice to see both Qatar and Emirates bidding for the 12% shares...
Jun 22, 2012, 3:55 am
#13
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In their own words, Emirates buy aircraft not airlines. Qatar and Etihad (the later is buying minority stakes in airlines left, right and centre) may be interested. If another airline or activist investor felt compelled to acquire a stake in IAG there is nothing to stop them buying shares on the open market, as Etihad has largely done.
It also has to be said that there is a very long history of airlines buying minority stakes in other airlines which have, at best, proved to be of questionable value and, at worst, absolutely destructive of value. A 12% stake is not going to give anyone that much influence.
Another possible, but highly unlikely IMHO, option is for IAG to buy back the shares.
It also has to be said that there is a very long history of airlines buying minority stakes in other airlines which have, at best, proved to be of questionable value and, at worst, absolutely destructive of value. A 12% stake is not going to give anyone that much influence.
Another possible, but highly unlikely IMHO, option is for IAG to buy back the shares.
Last edited by ian001; Jun 22, 2012 at 4:15 am
Jun 22, 2012, 4:10 am
#14
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Am I the only one who finds this a bit bizarre?
If he wants an investor who is neutral then he can't really expect them to contribute strategic value.
Can he really expect a 'competing' company not to try to influence BA's management? Or is he really saying "Bankia have been meddling busy-bodies and we'd prefer anybody else than them, even a competitor"?
Yes, another airline investing in BA might help to ensure both their interests are aligned but there must be less-costly ways (in the long-term) to achieve this.
Based on this article it looks like there might be an approach from another airline to buy this stake;Just speculation of course
He went on to say that IAG did not rule out having an airline as an investor, which “could be positive if they are neutral” and did not interfere in the company’s management.
Mr Walsh added: “Having Bankia as a shareholder has no strategic value for IAG. Nor does having a government with a stake in the company.”
Mr Walsh added: “Having Bankia as a shareholder has no strategic value for IAG. Nor does having a government with a stake in the company.”
Can he really expect a 'competing' company not to try to influence BA's management? Or is he really saying "Bankia have been meddling busy-bodies and we'd prefer anybody else than them, even a competitor"?
Yes, another airline investing in BA might help to ensure both their interests are aligned but there must be less-costly ways (in the long-term) to achieve this.
Based on this article it looks like there might be an approach from another airline to buy this stake;
