American Bids $1.1 Billion for JAL
AP:
Quote:
American, partners offer $1.1 billion to JAL
Airline in tug-of-war with Delta over Japanese carrier
TOKYO - American Airlines upped the ante in the tug-of-war over Japan Airlines, vowing Thursday to lead a $1.1 billion investment in the struggling carrier to prevent it from falling into the orbit of rival Delta.
American's chief financial officer, Tom Horton, told reporters that the offer is "far superior" to the $1 billion rival proposal from Delta Air Lines and its SkyTeam partners.
He refused to describe the composition of the offer, or say how much of the money would come from American. But he said the proposal by American, its oneworld partners and private equity firm TPG Inc. is part of a larger restructuring plan to get JAL back on solid footing. [
Article]
Re: American Bids $1.1 Billion for JAL
Time for historical irony: remember the Japan-bashing of the 1980s, when Americans reacted to what seemed at the time to be widespread buying of US assets by the Japanese? It didn't happen. Japan, facing an unforeseen economic crisis of its own, did not buy up the US of A after all. And now here's American Airlines bidding to buy their flag carrier for a song. And the other offer on the table is also from the US. The last laugh indeed, if anybody in the industry could laugh now.
I don't have any details on who's paying how much, but I'd think most of the $ comes from TPG. Heck, at those prices it could come from the guy who owns the bodega down the street. $1 billion nowadays buys you five 777s... or a whole airline that operates 50 of 'em. Wow.
