With a EUR 4.49 per share cash offer ready for implementation, Lufthansa's take over for Austrian Airlines (AUA2:AV) is still subject to Europe's scrutiny on both the state aid it received from Austria and the merger competition from Europe's merger council. Given firstly that state aid was approved by Europe for the likes of Olympic Airways in Greece, and that secondly Lufthansa would be willing to offer concessions on some of the overlapping routes, we believe that with Austrian trading at EUR 4-implying a 12.5% spread - it is attractive to go long Austrian, and receive the EUR 4.49 toward the early part of the third quarter of 2009.
On 26-May 2009, Austria’s Finance Minister Josef Proell and Neelie Kroes, the European Union’s competition commissioner, were emphasizing that both had an interest in finding a quick solution to the EC matters. Regulators have to decide by June 17 if the acquisition can simply be approved or if additional examinations have to be performed.
Panta Capital's Idea Sample Blog is designed to share a limited sample of what Panta Capital considers as attractive event driven and special situation investment ideas & insights. Please contact us to gain access to the PANTA CLIENT SECTION, where you will gain full access to all attractive European and North-American situations and analyses.
Panta Capital's Idea Sample Blog is designed to share a limited sample of what Panta Capital considers as attractive event driven and special situation investment ideas & insights. Please contact us to gain access to the PANTA CLIENT SECTION, where you will gain full access to all attractive European and North-American situations and analyses.
