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British Midland Airways chairman Sir Michael Bishop goes to court to force Lufthansa to buy his stake!

By Amarendra Bhushan for CEOWORLD Magazine Updated:May 21, 2009

British Midland Airways (BMI) said its controlling stockholder, BBW Partnership is taking legal action to force German Star Alliance member Lufthansa to complete on its take-up of option, Dow Jones reported.

BBW Partnership, the controlling shareholder of BMI, has issued proceedings in the High Court to declare that BBW have fulfilled all the necessary regulatory requirements to complete the sale of BMI to Lufthansa.

The statement added, it seeks that Lufthansa be required to complete the acquisition of the shares.

Lufthansa already owns 30 percent minus one share in BMI, but has said it will increase its stake by buying 50 percent plus one share from BMI founder Michael Bishop.

Bishop exercised a put option back in October 2008 that obliges Lufthansa to buy his stake for US$551.1 million. The deal was originally agreed back in 1999, with the European Commission approving the takeover on May 14.

Sir Michael Bishop, who owns 50pc plus one share of BMI through his BBW Partnership, exercised an option last year requiring Lufthansa to pay about £300m for his stake.

Sir Michael Bishop CBE – Executive Chairman, bmi

Sir Michael Bishop, is a British businessman with an estimated personal wealth of £480Million.

Sir Michael Bishop began his airline career at Manchester Airport in 1963 and joined British Midland a year later. He was appointed general manager in 1969, and subsequently a director in 1970, managing director in 1972 and chairman in 1978.

He was awarded a CBE in 1986 and knighted in 1991 for his services to the aviation industry. Sir Michael’s other aviation interests include deputy chairman of Airtours plc (1987-2001), an honorary companion of the Royal Aeronautical Society, fellow of the Chartered Institute of Transport and freeman of the Guild of Air Pilots and Air Navigators. He is based at the airline’s headquarters, Donington Hall near Derby.

Openly homosexual but not known for publicly speaking out about gay rights, a member of the Conservative Party since the age of 17, he is chairman of the Board of Trustees of the D’Oyly Carte Opera Company – which performs the operas of Gilbert and Sullivan – due to his personal financial sponsorship.

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