BA mulls billion pound bmi bid

British Airways PLC
is mulling a £1 billion bid for low-cost rival bmi, reports in the Times and The Telegraph said. The chairman of bmi, Michael Bishop, who is also a 50 pct shareholder, is understood to have received a number of approaches from airlines looking to buy his stake.

Although he has so far refused to sell, the Times said potential bidders believe he will offload his stake later this year.

The British flag carrier is believed to have raised the issue with him already and is monitoring the situation closely with a view to bidding if his stake is put up for sale, the newspaper said.

In a separate report, the Times said that the Texas Pacific Group is considering a 4 bln eur bid for Iberia—a move that could force BA to launch a rival offer.