Flybe take-over of British Airways regional arm BA Connect misses deadline, unspecified complications cited

London
Source: Flightglobal.com
This story is sourced from Flightglobal.com

Completion of UK regional carrier BA Connect’s sale to Flybe has been delayed as they work on finalising legal processes and will not be officially announced tomorrow morning as expected.

Oneworld carrier British Airways revealed its plans to sell regional arm BA Connect to Flybe last November, with aims to complete the deal by the close of 2006. Timelines for the acquisition have since slipped several times.

During a 16 February meeting a joint steering committee fixed today as the likely acquisition completion date. A stock exchange announcement was due to follow tomorrow.

But a BA Connect spokeswoman says: “Due to extended legal processes associated with the sale of BA Connect to Flybe, the completion date has been deferred and is unlikely to occur on 1 March as expected.”

The firms have secured regulatory clearance for the deal from the UK and Channel Islands authorities. It is unclear exactly what is holding up the process, although it is believed to be pensions-related.