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’CDS report: Fundamentals outweigh events
Global credit markets bounced back today as the strong fundamentals evident in recent weeks outweighed idiosyncratic risk. The Markit iTraxx Europe index was trading around 80.5bp, losing some of its gains from earlier in the day but still 3bp tighter than yesterday’s close.
American Airlines raises $2.9bn
AMR, the parent of American Airlines, has struck financing accords with GE and Citigroup that will free $2.9bn in cash to help offset a slump in air-travel demand, reports the FT. Shares of the carrier jumped more than 23% on Thursday’s news,
Iberia gives BA merger ultimatum
British Airways must choose between Qantas or Iberia as its future merger partner, the chief executive of the Spanish carrier said Wednesday, adding it would be “too complex” to pursue both deals. Iberia’s Fernando Conte said he was to meet Willie Walsh,
BA explores merger with Qantas
British Airways and Qantas are exploring a potential merger that could greatly accelerate consolidation of the global airline industry. After an initial approach from Qantas, BA said it was studying a merger with the Australian flag carrier “in a dual-listed company structure”.
Lex on airline mergers
It is wise if you’re heading into air turbulence to have a parachute, notes Lex, and British Airways “has three tucked under its seat”: ongoing merger talks with Iberia, a potential tie-up with American Airlines,
BA eyes tie-ups with US carriers
British Airways, American Airlines and Continental Airlines are “exploring opportunities for co-operation” that could lead to a transatlantic alliance of three of the world’s biggest carriers. Confirmation by BA and American of the talks comes amid intense manoeuvring among US carriers triggered by the recent announcement of the planned takeover by Delta Air Lines of Northwest Airlines.
Apax taps Lufthansa/Air France for Iberia bid
Just as BA and TPG confirm their offer for Iberia on Friday, so reports appear that Apax Partners is doing its utmost not to be left out of the party. The Daily Telegraph reports that the British private equity firm is in talks with Air France-KLM as well as Lufthansa about cobbling together a £2.3bn move for the Spanish carrier.
British Airways confirms Iberia consortium
The face of the airline industry is changing and in its own inimitable style, British Airways issued a statement on Tuesday, compressing pages of potential analysis and insight into three short sentences:
BA and friends set to swoop on Iberia
British Airways may publish details of a consortium play for Iberia on Friday, according to a report from Spanish newspaper Expansion. The grouping would include TPG and Apax Partners along with their partners Vista,
BA considers bid for Iberia
British Airways is in talks with at least three private equity groups, including TPG and Apax Partners, about joining a consortium bid for Iberia, the Spanish flag carrier, Europe’s fourth largest. However,
Will BA and Iberia take flight?
A little more clarity has appeared on British Airways’ role in the ongoing Iberia takeover situation in Spain. The British flag-carrier said on Monday that it has been considering how to use its 10 per cent holding in Iberia following Iberia’s announcement that it has received a bid approach.
Iberia retains Goldman as advisor
Spanish flag carrier Iberia has retained Goldman Sachs for a possible sale, according to a report from Spanish newspaper Expansion. Citing market sources close to the situation, the paper says that Credit Suisse has also been taken on by the airline.
British Airways seen mulling £1bn bid for rival bmi
British Airways is considering a £1bn bid for its rival British carrier bmi, The Times reported on Wednesday.
Sir Michael Bishop, the chairman and a 50 per cent shareholder of bmi, is understood to have received a number of approaches from airlines looking to buy his stake,
Four reportedly in the running for Iberia
Hot on the heels of a seeming denial from Germany’s Lufthansa that it is interested in bidding for Iberia, Fernado Conte, chairman of the Spanish airline, has told his board that Lufthansa is actually one of four parties interested in a takeover,
BA set to complete Flybe deal
British Airways is expected to announce on Monday the completion of the sale of a large part of BA Connect, its loss making UK regional operations, to Flybe. The deal could cost BA about £150m, including financial guarantees.
Flights of fancy
Qantas bowed to a buy-out and takeover rumours have swirled around BA and, most recently, American Airlines. So what does it mean when private equity starts sniffing around the notoriously unstable airline industry,
CDS Report: Merck, Ono, Pearson, British Airways
Junk-rated European credit derivatives were trading near record low levels again on Monday morning, underlining the continuing bullishness in the credit market.
The iTraxx Crossover, the index of the most widely traded junk-rated companies — or non-investment grade companies — was trading at 200 basis points,
Could BA be next on the block?
The $8.7bn proposed takeover of Qantas by a consortium of private equity buyers encourages more blue-sky thinking, says Lex. Could BA, now that it has addressed its £2.1bn actuarial pension deficit, be the next on the block? With infrastructure funds of at least $100bn seeking a home,
CDS report: BA price falls on union agreement
British Airways is in the spotlight in the credit derivatives market in London this morning, as investors assess the news that emerged late on Friday that the airline has reached a deal with its four main trade unions on plans to tackle its £2.1 billion-pound pension deficit.
Prediction watch No2: M&A
M&A this time, from the Telegraph, with their top ten takeover tips for 2007.
Their list is as follows:
1) Aegis – conclusion expected to the long-running soap opera
2) Bellway – more consolidation
Markets live transcript 22 Dec 2006
Markets live chat transcript for the chat ending at 11:56 on 22 Dec 2006. Participants in this chat were: Helen Thomas (HT) Neil Hume (NH)
HT: Good morning – welcome ot the last Markets Live of 2006!!
HT: