Dog fight

8 January 2021 By Ed Cropley Follow @edwardcropley

The Microsoft founder has checked in with Blackstone to offer $4.3 bln for Signature Aviation, which runs small airports for the mega-rich. Rival Carlyle may trump that. But Gates’s 19% stake and the already-high price makes it harder for a counter-bid to get off the ground.

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Private equity giant Blackstone on Jan. 8 said it had joined forces with Microsoft founder Bill Gates to pursue a bid for Signature Aviation. Gates’s Cascade Investment is the private-jet servicing company’s biggest shareholder with a 19% stake.

Blackstone and Cascade said they were in “advanced discussions” with Signature over a cash offer worth $5.17 (381 pence) per share. The offer values the company at $4.29 billion. Blackstone will own 70% of the bidding vehicle, with Cascade owning 30%.

The announcement came the day after Signature confirmed a takeover approach from private equity rival Carlyle.

Signature’s London-listed shares were down 4.1% at 401 pence by 0924 GMT on Jan. 8.

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