LH to sell B6 stake

[WorldTraveler]

Deutsche Lufthansa AG is set to shed its stake in JetBlue Airways Corp. after more than seven years, a span in which the U.S. airlines shares more than doubled amid an industry rebound.

The exit plan, via an early redemption of Lufthansa bonds convertible into JetBlue shares, will help improve the German carriers balance sheet as it faces competition abroad and in Europe as well as crippling strikes by pilots. Lufthansa became JetBlues largest investor in 2007 and holds two board seats.

http://www.bloomberg.com/news/articles/2015-02-18/lufthansa-offers-early-bond-redemption-shedding-jetblue-stake

Lufthansa, which owns about 15 percent of JetBlue, has come under pressure as Persian Gulf rivals take market share on long-haul routes and low-cost carriers expand in Europe. Thousands of flights have had to be canceled as pilots staged a series of strikes against the carrier.

The 234.4 million euros ($266 million) in exchangeable senior notes were issued by Lufthansa Malta Blues LP in 2012. They pay a coupon of 0.75 percent, are set to mature in April 2017 and convert into JetBlue shares or cash at the choice of the owners.

 

[topDawg]

Deutsche Lufthansa AG is set to shed its stake in JetBlue Airways Corp. after more than seven years, a span in which the U.S. airlines shares more than doubled amid an industry rebound.

The exit plan, via an early redemption of Lufthansa bonds convertible into JetBlue shares, will help improve the German carriers balance sheet as it faces competition abroad and in Europe as well as crippling strikes by pilots. Lufthansa became JetBlues largest investor in 2007 and holds two board seats.

http://www.bloomberg.com/news/articles/2015-02-18/lufthansa-offers-early-bond-redemption-shedding-jetblue-stake

Lufthansa, which owns about 15 percent of JetBlue, has come under pressure as Persian Gulf rivals take market share on long-haul routes and low-cost carriers expand in Europe. Thousands of flights have had to be canceled as pilots staged a series of strikes against the carrier.

The 234.4 million euros ($266 million) in exchangeable senior notes were issued by Lufthansa Malta Blues LP in 2012. They pay a coupon of 0.75 percent, are set to mature in April 2017 and convert into JetBlue shares or cash at the choice of the owners.

it was only a matter of time once UA/CO happened. No real need for the B6 stake now that your ATI has a huge hub at EWR. 

 

[eolesen]

Dunno. I'm not sure LH was ever interested in anything more than a financial investment, but the timing was definitely not good for them with regard to the UACO merger.

Maybe LH got enough benefit from the convertible offering they issued against the shares in March 2012 to make this worthwhile, but it sure doesn't look like they did more than break even against the initial ~$320M investment.

 

[FrugalFlyerv2.0]

Any idea for how much longer B6 will keep the codeshare with LH?