Three leading European airlines are in exclusive talks with two British private equity funds to form a new company to buy out all of Spanish travel bookings company Amadeus for €4.34 billion.
Air France-KLM, the world's largest airline by sales, said that it and carriers Iberia and Lufthansa were in exclusive talks with funds BC Partners and Cinven.
If the bid of €7.35 per share bid for Amadeus's Class A shares is successful it would be one of the biggest takeovers in Europe by buyout firms.
The three airlines plan to remain shareholders in Amadeus, although they will sell part of their holdings in the proposed buyout. Air France has 23 percent of Amadeus, while Iberia has 18 percent and Lufthansa 5 percent.
Together, the airlines hold more than 86 percent of shareholders' voting rights.
Amadeus connects more than 64,000 travel agencies and books flights on about 500 airlines. It also makes reservations with hotel, car rental, cruise, tour and ferry operators.
In the first nine months of 2004, Amadeus made sales of over €1.5 billion and net profit of €178 million.
The company sent information to prospective bidders in September after several of its key shareholders said they had received approaches.