Monday, January 14, 2013

Qatar Airways confirms Cargolux stake sale

   My Orchids. "Sand Dollar". Photo ET


This is not really news anymore, but a confirmation that finally some people did what they said they would do. And that is quite remarkable. Though everyone puts his own spin on the story, which is OK. So no one loses face.

The Luxembourg government, burned by its very poor performance in dealing with Cargolux issues so far, had to back out of the deal. It has since decreed that more secrecy should govern future actions, which is useful when you can't improve your performance. The first action though has not remained secret: the buy-back price is $117.5 million. It might be good or bad that this secret is out. It is all about what your strategy is. What is the strategy? CV needs capital right?

And if negotiations are generally kept secret, it is not always the best tactics. Hint: how easy it gets when you can object to a bad offer that the unions will have all hell break loose. But, Mr. Frieden, that objection has to be made before you sign the deal.

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