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LONDON - British Airways is contemplating a £1 billion ($2.75 billion) bid for smaller rival BMI, the Times newspaper has reported.
The Daily Telegraph also said BA was mulling a bid, but noted it would face competition hurdles and a possible veto from Lufthansa, which owns 30 per cent of BMI.
A BA spokeswoman said the airline never commented on "rumour and speculation". BMI was not available for comment.
BMI is half owned by chairman Michael Bishop, with the remainder held by Scandinavia's SAS. The Times said Bishop had received several approaches from carriers looking to buy his stake.
He has so far resisted but potential bidders were quoted as saying they believed he would sell this year. BA would consider a bid when Bishop sold, the newspaper said, adding that Lufthansa would have the first say in a sale.
The Telegraph said senior BA sources were known to covet BMI, which holds 12 per cent of the takeoff and landing slots at London's Heathrow airport.
Last week, Richard Branson's Virgin Atlantic said it remained interested in buying BMI, but a BMI spokeswoman said the carrier was not interested. Virgin Atlantic plans to expand vigorously after European ministers agreed a deal this month allowing EU airlines to fly from any city in Europe to any US city, and vice versa.
- REUTERS
