DHL Airways Misses June 30 Takeover Target

Share this content:
DHL Airways Inc. did not meet its June 30 deadline for completing its acquisition by a group led by John Dasburg, its chairman and chief executive. But the company said that the deal is not in danger.

Dasburg, who now owns 5 percent of the airline; Richard C. Blum of San Francisco's Blum Capital Partners and Michael R. Klein, a Washington business executive and lawyer, are trying to buy the remaining shares of DHL Airways from Idaho private investor William A. Robinson, who owns 75 percent of the company's voting shares. The U.S. arm of DHL International, a Brussels-based subsidiary of Deutsche Post, owns the rest.

According to reports, Sanford Litvack, an attorney representing DHL Airways, said in a letter filed June 30 with the U.S. Department of Transportation that the completion "has been postponed," without offering an explanation.

The cost of the transaction is expected to be $57 million. DHL Airways also said that upon completion of its acquisition it will change its name to AStar Air Cargo Inc.

The deal also needs approval from the Department of Transportation, which is investigating whether DHL Airways violates laws limiting how much a foreign entity can hold in a U.S.-based airline. The investigation was sparked by complaints from FedEx Corp. and United Parcel Service that a complex web of subsidiaries hides Deutsche Post's ownership of DHL, which in turns controls DHL Airways.

U.S. Judge Ronnie Yoder has ordered DHL to produce detailed copies of contracts, aircraft lease agreements, management documents and other paperwork going back 3 1/2 years in advance of a hearing scheduled for Aug. 19. He also said he would proceed with the review despite the proposed sale of the company to Dasburg's group.


Next Article in Direct Mail

Sign up to our newsletters

Company of the Week

Since 1985, Melissa has helped thousands of companies clean, correct and complete contact data to better target and communicate with their customers. We offer a full spectrum of data quality solutions, including global address, phone, email, and name validation, identify verification - available for batch or real-time processes, in the Cloud or on-premise. Our service bureau provides dedupe, email/phone append and geographic/demographic append services for better targeting and insight. For direct mailers, Melissa offers easy-to-use address management/postal software, list hygiene services and 100s of specialty mailing lists - all with competitive pricing and excellent customer service.

Find out more here »

Career Center

Check out hundreds of exciting professional opportunities available on DMN's Career Center.  
Explore careers in digital marketing, sales, eCommerce, marketing communications, IT, data strategies, and much more. And don't forget to update your resume so employers can contact you privately about job opportunities.

>>Click Here

Relive the 2017 Marketing Hall of Femme

Click the image above