The Deal
Saturday, November 21, 
9:10 pm

Rising fuel costs spur global airlines mergers

  Share     E-Mail    Discussion    Print Story

Global airlines continue to merge in the face of soaring fuel costs. Spanish discount carriers Clickair SA and Vueling Airlines SA late Monday said they would combine in a deal that will leave Clickair's majority owner, Iberia Lineas Aereas de Espana SA, as the largest shareholder. It may also halt the apparent freefall of Vueling's share price and the squeeze on its margins, which has led to two profit warnings. Vueling stock was trading up 19% by early afternoon Tuesday, giving the group a market value of €97.2 million ($152.3 million). That's less than a quarter of its value as of a year ago. Iberia itself just managed to elude a takeover by TPG Capital late last year for over $5 billion.

Continue reading below

Also on Dealscape

In the U.K., drugs and alcohol testing company Concateno plc has attracted takeover interest. The company has grown rapidly since its 2005 listing on London's Alternative Investment Market by snapping up rivals. Concateno has hired UBS to sift through the various proposals but has provided no information about its suitors or their potential offers. - Laura Board

TheDeal.com: Spanish airlines to merge
TheDeal.com: Concateno considers sale



Post a comment





The Deal Pipeline

Deal Video


Inside The Deal: Avaya Inc.'s Mohamad Ali on the company's next target.


More video...

Crisis On Wall Street
Technology
Deals of The Decade

Community

Industry Insight

Managing your shareholder base

Growth companies and their PE sponsors should be wary of the pitfalls that arise when they layer on tiers of preferred stock.


Industry Insight

Easing the stress of distressed M&A

Corporate buyers face numerous complexities when trying to identify the right moment to purchase a distressed asset.


Editor's Note

Editor's letter: Nov. 16, 2009

Beneath the veneer of Wall Streeters beats the same heart, stirred by the same determinants of behavior.


footspacer.jpg footspacer.jpg footspacer.jpg footspacer.jpg footspacer.jpg


©Copyright 2009, The Deal, LLC. All rights reserved. Please send all technical questions, comments or concerns to the Webmaster.