Air Berlin Grounded

Don’t blame the stewardesses. They may be the stars of a massive advertising campaign designed to fan demand for shares in Air Berlin. But it’s not their fault that investors have so far shunned the offer, forcing the discount airline to delay its initial public offering. The problem was that Air Berlin was being too greedy. It had been hoping to sell the shares at E15-17.5, valuing the company at eight times earnings before interest, tax, amortisation and rent. That’s roughly a 15% discount to...