Qatar take 9.99% stake in IAG (BA Owners)
Jan 30, 2015, 3:04 am
#17
Join Date: Dec 2009
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You must not have read the article.
A non-EU entity can hold, at most, 49% of a European airline (hence Etihad owns 49% of Alitalia; Delta owns 49% of Virgin Atlantic; etc)
A non-EU entity can hold, at most, 49% of a European airline (hence Etihad owns 49% of Alitalia; Delta owns 49% of Virgin Atlantic; etc)
"The 9.99% stake is the maximum holding Qatar can currently buy under EU ownership rules"
As you point out with Delta's VS share, this is clearly not the case.
Jan 30, 2015, 3:12 am
#18
Original Poster
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Mea culpa - worse than that, I relied on The Guardian:
"The 9.99% stake is the maximum holding Qatar can currently buy under EU ownership rules"
As you point out with Delta's VS share, this is clearly not the case.
"The 9.99% stake is the maximum holding Qatar can currently buy under EU ownership rules"
As you point out with Delta's VS share, this is clearly not the case.
They can't even work out that 10% is not 9.99%.
Jan 30, 2015, 3:22 am
#19
Join Date: May 2011
Posts: 2,379
9.99% rounded to the nearest full number is 10%... While they clearly got their facts wrong on the ownership rules, it's wholly acceptable to round 9.99 to 10.
Jan 30, 2015, 3:38 am
#21
Join Date: Oct 2014
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The FT rounded to 10% in their headline too. :-)
The 9.99% does suggest there's *some* cap, or threshold, they're coming in under, though. QR could find the price of an extra 0.01% by looking under an F seat. Anyone knows what happens at 10%?
The 9.99% does suggest there's *some* cap, or threshold, they're coming in under, though. QR could find the price of an extra 0.01% by looking under an F seat. Anyone knows what happens at 10%?
Jan 30, 2015, 3:47 am
#22
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The shares were bought on the market. Interesting the shares have been bought now when QR had the chance to buy Bankia's stake (for a much lower price!) a few years ago.
Jan 30, 2015, 4:07 am
#23
Join Date: Jan 2015
Posts: 1
A quick perusal of the City Takeover Code makes me think that they have stopped at 9.99% because if they acquired 10% and then made an offer for a significantly larger stake (to bring their holding up to maximum 49% they are allowed, for example) they would have to offer to buy that larger stake at the highest price paid to acquire any shares in the 10% stake. See Rule 11.1 of the Takeover Code. If they stop at 9.99% they can acquire another 40% at a lower price.
Jan 30, 2015, 4:48 am
#24
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I might celebrate by crystallising my gain as I'll get no discount after the weekend...
Jan 30, 2015, 4:58 am
#25
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1/9 = 0.111...
9 * 1/9 = 9 * 0.111...
1 = 0.999...
or
x = 0.999...
10x = 9.999...
10x = 9 + 0.999...
10x = 9 + x
9x = 9
x = 1
Jan 30, 2015, 5:11 am
#27
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However, 0.99 is not equal to 0.999... and 9.99 is not equal to 9.99... .
It is unlawful for an EU airline to be under the control of a non-EU person or company. At 10% the EU Commission might start to get interested in what kind of influence QR is having on IAG and begin an investigation.
Jan 30, 2015, 6:34 am
#29
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Probably bad news for IAG staff
“If you did not have unions you wouldn't have this jobless problem in the western world… It is caused by unions making companies and institutions uncompetitive and bringing them to a position of not being efficient,” Akbar Al Baker
“If you did not have unions you wouldn't have this jobless problem in the western world… It is caused by unions making companies and institutions uncompetitive and bringing them to a position of not being efficient,” Akbar Al Baker
Jan 30, 2015, 6:40 am
#30
Join Date: Aug 2009
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I wonder if they bought my 200 shares I sold yesterday? I only bought them for the discount (at £2 per share) so quite happy with the nice profit (but not happy that they took away the discount).