Trabajo fusiones

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  • Publicado : 22 de enero de 2012
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Content

1. Companies’ introductions 4

a. Iberia 4

b. British Airways 5

2. Merger strength 7

a. Strong positioning 7

b. Complimentary networks and hubs 11

c. Enhanced customer benefit 11

3. Leading Brands 13

4. Synergies 14

a. Synergy overview 14

b. Revenue synergy breakdown 16

c.Cost synergy breakdown 16

5. Governance and management 18

Conclusion 21

Introduction

A merger consists in combining of two or more companies, generally by offering the stockholders of one company some securities in the acquiring company in exchange for the surrender of their stock.

In this report, we have taken a deep look at the merger of two airline companies---Iberia and BritishAirway. We will first introduce both of the airlines, explaining part of the reason why this merger happened. Then we will go on talking about how the process was implemented and advantages it brought in, which includes their strong positioning as well as complimentary network and hubs. After that, we will see the advantages about enhancing customers benefits and the leading brands in this industry,before explaining the synergies. Eventually, we will take a look at the governance and internal manegerment.

Companies’ introductions

Iberia

Iberia Líneas Aéreas de España, S.A. is the flag carrier airline of Spain. Based in Madrid, it operates an international network of services from its main bases of Madrid-Barajas Airport and Barcelona El Prat Airport.

Iberia Groupprovides services not only about transporting passengers and freight, but other related activities, such as aircraft maintenance, handling in airports, IT systems and in-flight catering.

Its owenership is helpful to the future merger with British Airway.

On 3 April 2001, Iberia was privatized and included in the IBEX-35 stock index of the Madrid stock exchange. The core shareholders are:Caja Madrid– 23.45%, British Airways 13.2%, SEPI– 5.20%, El Corte Inglés– 2.90%. British Airways has raised its stake in Iberia by purchasing American Airlines' remaining shares, reportedly paying £13m for the small shareholding. This increases the total stake in Iberia to around 10% and preserves its two seats on the Iberia board. British Airways also has first right to purchase another 32% ofIberia's shares. Consequently any takeover of Iberia would require the approval of British Airways.

However, British Airways cannot acquire more than 49% of Iberia as bilateral air services agreements between Spain and non-EU countries require Iberia to remain in overall Spanish ownership (at least 51%) if the airline is to retain its rights to fly to these countries from Spain. But still, Iberia’sowenership stucture lays a strong foundation for its consolidation with another airline company.

Net Income (euro, million)
|
|IBIA |2009 |2008 |2007 |2006 |2005 |

|
|Net Income |-273.0 |32.0 |327.0 |56.73 |395.79|

British Airways

British Airways plc (BA) is the flag carrier airline of the United Kingdom which is based and headquartered in Waterside, near its main hub at London Heathrow Airport.

Its services are quite different from Iberia Group, which diversifies its operational activities after two companies’ merger.

British Airways Plc operates international and domesticscheduled air services for the carriage of passengers, freight, and mail. The company also provides ancillary services, as well as airline marketing, aircraft financing, aircraft maintenance, package holidays, and insurance services.

Net income (pound, million)
|
|British Airway |2010 |2009 |2008 |2007 |2006 |...
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