Delta buys 49% of Virgin Atlantic (official)
#346
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This is actually not true. SQ has a minority of board seats, as does Delta (3). There's input sure, but the ability to "block" didn't/doesn't exist.
#347
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One would have to speculate that Singapore Air did not want to break up its holding to sell to a number of buyers, as this would have reduced the value of its holding. Therefore, they must have taken the view that a potential buyer had to buy the entire 49% or nothing at all. In other words, Delta was probably faced with the following choice: if you want to have equity ownership in Virgin Atlantic, either buy our 49% or walk away.
Delta wanted the JV to London while also having the size and network to help fill VS planes with traffic both ways. A win win for both and a venture that should prove profitable in a short time.
#348
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Singapore has it's own financial issues and couldn't turn down hundreds of millions of dollars for their stake in a money losing venture. I seriously doubt Delta ever engaged Singapore in a less than 49% discussion.
Delta wanted the JV to London while also having the size and network to help fill VS planes with traffic both ways. A win win for both and a venture that should prove profitable in a short time.
Delta wanted the JV to London while also having the size and network to help fill VS planes with traffic both ways. A win win for both and a venture that should prove profitable in a short time.
http://dealbook.nytimes.com/2012/12/...-million/?_r=0
#349
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"Singapore bought its stake in 2000 for £600.3 million ($966 million), but it has been dissatisfied with the returns, analysts said. While Delta had considered buying Singapore’s stake two years ago, the carriers could not agree on a price.
http://dealbook.nytimes.com/2012/12/...-million/?_r=0
http://dealbook.nytimes.com/2012/12/...-million/?_r=0
More of a bad decision by SQ in the first place... but no hard feelings for the Virgin brand as they just bought more fo Virgin Australia which has more startegic value given their location from Virgin Group