RE:Follow-upWonder why Aeromexico would choose to play a game of poker with such a weak hand... Frankly, I would have been much more happy with Aeromexico coming in with an hostile bid to acquire all of Aimia... Just with the spread of cash on hand, disposal of other business stakes and the Canadian tax loss, they could have gotten away with quite a rebate... But it would seem unlikely that Mittleman would agree to tenter his shares, unfortunately.
cigarbutt1 wrote: Somehow, the previous post may not have come out clear.
Here's the last part:
They obviously did not elaborate on the options and described 'potential' breaches and I agree with them that the game they decided to play is very serious indeed.
I hope Aimia will continue to take actions required to protect the interests of their owners.
There may have been unusual proximity between the PLM CEO and Aimia and perhaps relevant questioning is necessary for the number of consulting hours billed but Aeromexico could not have made their loyalty program lift off the ground by themselves in 2011 and the intial partnership structure simply reflected that. Now that their program is flying, they want to get rid of their strategic partner and I would say that, like it or not, this will require a golden parachute. It seems to me that the price to run away from Aimia may be that the Aeromexico people need to shoot themselves in the foot.
This is not Mother Teresa's business but isn't PLM underlying commercial activity about loyalty?
Aimia needs a unified and strong front team on their side of the negotiating table