A New Bidder for Amadeus

Citigroup Venture Capital Equity Partners, the U.S.-based buyout firm that leveraged up some monies to buy Worldspan, has submitted a bid for Amadeus that was higher than the one selected by Amadeus´ owners, Air France, Lufthansa and Iberia.

However, they decided to negotiate instead with two firms, Cinven and BC Partners, whose $5.7 billion bid was lower than Citygroup Venture Capital´s, according to Travel Weekly magazine.

Under the parameters of the deal, which is expected to be announced shortly, the airlines would lower their equity stakes slightly but give an equity and voting-rights majority to the new owners, who would take Amadeus private.

There has been much speculation on why the airlines accepted a lower bid. Among the theories: They wanted Amadeus to remain under European control, they didn´t want to merge with Worldspan or they think they can buy Worldspan on the cheap later.