Ryanair's suitor is an intensely private man with flair for dealmaking

The career of David Bonderman, the front runner to buy a stake in Ryanair, is examined by Paul O'Kane

By PAUL O'KANE

THE man who has emerged as the most likely buyer of the 25 per cent of Ryanair, which is currently for sale, is an intensely private individual whose business interests include health care, entertainment, food, wine and commercial aviation.

Texas based investor Mr David Bonderman, who is a lawyer by profession, was formerly associated with the billionaire Mr Robert Bass before striking out on his own to make his first major deal three years ago.

The deal in question was a remarkably sweet one. In April 1993, Mr Bonderman led a 5450 million (£279.5 million) re capitalisation of Continental Airlines, which was then in Chapter II bankruptcy protection for the second time. Air Partners, a subsidiary of Mr Bonderman's main vehicle, Texas Pacific Group (TPG), took a stake in Continental with a $64.3 million investment. Mr Bonderman was made chairman of the airline shortly after the deal.

The value of TPG's holding in Continental has since increased to more than $500 million as the airline has reported record profits and risen from the bottom to the top of the monthly US federal ratings for on time performance.

Continental, which is America's fifth biggest airline, has 37,000 employees and operates hubs at Houston, Texas Newark, New Jersey and Cleveland, Ohio. It operates more than 2,000 flights each day to 136 US destinations and 56 international destinations.

Mr Bonderman's TPG is about to raise 562 million through a restructuring which will see its equity stake in Continental fall from 28 per cent to 23 per cent.

But as part of the deal, under which Mr Bonderman stands to gain $7 million personally, Air Partners will actually increase its voting stock from 44.6 per cent to 52.2 per cent as another Continental shareholder, Air Canada, is selling most of its stake and converting voting stock equity.

Less than 18 months after the Continental deal, TPG also helped bring America West Airlines out of Chapter II protection in a deal which gave Mr Bonderman and his associates 33.5 per cent of the company for $43.6 million. The deal was also supported financially by Continental and Mesa Air, both of which decided to sell off some of their stock earlier this year. TPG said at the time it would also sell some of its shares to make the public offering worthwhile.

TPG raised 54 million through the sale and still owns America West stock worth more than 580 million, which gives it 44 per cent of the voting rights in the company.

America West, which operates under the slogan "It Would Be Silly to Pay More", is the ninth largest carrier in the United States and serves more than 90 destinations.

Mr Bonderman was also linked to Mr Richard Branson's new European low cost carrier, but was believed to have dropped out of the project before the consortium led by Virgin Atlantic bought 90 per cent of Euro Belgian airways.

Mr Bonderman may view Ryanair as a base from which to build his own European low cost operator or eventually merge it with the Virgin operation. Ryanair has been very successful but the company requires substantial investment in the medium term to either refit its existing aircraft or to lease new planes.

Mr Bonderman and Mr Branson previously came together to buy the British MGM cinema chain for 5300 million in June 1994. TPG owns about 30 per cent of what is now known as Virgin Cinemas, which has about 20 multiplexes, including sites in Dublin and Belfast.

TPG also owns Favourite Brands, the former caramel and marshmallow unit of Kraft foods, for which it paid an estimated $200 million, and two wine businesses in California.

It has recently invested in two telecommunications companies. One is Paradyne, which makes Internet tools and was bought earlier this year for $175 million, while the other is St Joe Communications which operates a rural telephone company in Georgia, Florida and Alabama.

In November 1995, in what was then the most valuable deal in the history of the US wine business, TPG and Californian investment group Silverado Partners bought Nestle's wine division for $350 million. The deal gave Mr Bonderman and Silverado 6,000 acres of coastal vineyards, and a company with sales of 4.5 million cases a year. Twelve months later the two companies bought another Californian vineyard for an estimated $30 million.

Mr Bonderman (53) is originally from New York and graduated magna cum laude from Harvard Law School. After graduation he taught for two years in New Orleans before joining the Civil Rights Division of the US Justice Department. He completed a Harvard fellowship and joined a Washington based law firm before becoming an adviser to Mr Bass in 1983.

He speaks fluent Arabic and travels widely, particularly in the Middle East. He often holidays in Katmandu, and is also fond of Paris and the south of France.

The multi millionaire's other major passion is music. He possesses a huge collection of old rock and roll 455 and is said to know not only the lyrics, but also which track is on the B side of each single.