Leelaw From , joined Dec 1969, posts, RR: Posted (8 years 7 months 2 weeks ago) and read 3287 times:
DOW JONES -May 4, 2005:
"RIO DE JANEIRO -- Portuguese carrier TAP Air Portugal (TPA.YY) made an offer to buy a stake in Brazil's troubled airline Viacao Aerea Riograndense SA or Varig, an official at Varig said Wednesday.
The official, who didn't want to be named as is customary at Varig, said TAP made the offer about two weeks ago, adding that the Portuguese company was one of several that have made offers to Varig. He declined to give any further details...
...Portugal's Jornal de Negocios newspaper on Tuesday reported that TAP had offered to merge with Varig to form a new airline for South Atlantic air traffic in which TAP would have a 20% stake and management control.
TAP officials in Lisbon contacted by Dow Jones Newswires had no comment, but the company repeatedly has said that Brazil is a key market for it.
Brazil's legislation allows foreign companies to acquire a maximum stake of 20% in Brazilian airlines.
Local newspaper O Estado de Sao Paulo reported Tuesday that the U.S.-based Texas Pacific Group (TGP.XX) was looking at a possible purchase of Varig and had begun an analysis of the financial situation of Varig in a process that could extend over a period of 90 days.
Two Brazilian entrepreneurs, Nelson Tanure and German Efromovich, who owns the small Brazilian airline Ocean Air, have separately expressed an interest in buying Varig.
...Brazil's media have speculated for months about a possible solution to save the cash-strapped airline. The government has made clear that it favors a market solution over a billion-dollar bailout of the company.
Brazil's third-largest carrier, Gol Linhas Aereas (GOL), has also been linked with a possible purchase of Varig. Gol has denied presenting any offer and, without referring specifically to Varig, said that any acquisition undertaken would have to fit in with its low-cost, low-fare strategy..."
Hardiwv From Brazil, joined Oct 2004, 8780 posts, RR: 51 Reply 1, posted (8 years 7 months 1 week 6 days 21 hours ago) and read 3188 times:
Yet another buyer for VARIG, but who will pay the USD 2.5 billion debt...
...and how is TAP going to have the cash to buy 20% of an airline triple its size?
Quoting Leelaw (Thread starter): Two Brazilian entrepreneurs, Nelson Tanure and German Efromovich, who owns the small Brazilian airline Ocean Air, have separately expressed an interest in buying Varig.
Mr. Efromovich is an oil-business magnate in Rio de Janeiro, recently he bought Colombian flagship airline AVIANCA, and I'm sure is the front runner. He also has plenty of cash!
Velasco From Portugal, joined Jan 2005, 101 posts, RR: 0 Reply 3, posted (8 years 7 months 1 week 5 days 22 hours ago) and read 3016 times:
Indeed in the last couple of days the portuguese press has been releasing more and more specific info on the bid by TAP Portugal to buy into VARIG. As rumours in the press have grown this week, TP's CEO Fernando Pinto was forced yesterday to deny the intent of a "merger" with VARIG but has confirmed having presented a "restructuring plan" for the troubled company. Dont know on TP's real chances on this but it would probably make some business sense given the growing transatlantic market between the two countries.
Lisboa-Rio on the A340... São Pedro e São Paulo down below...
Erikwilliam From Brazil, joined Mar 2004, 2152 posts, RR: 13 Reply 5, posted (8 years 7 months 1 week 5 days 21 hours ago) and read 2996 times:
It´ll never go trough.
They can only buy 20% of Varig, and as for Brazilian regulation, a Airline can´t have more than 20% of foreign capital, that means, they´ll have to find someone to buy the other 80%.
Mr.Efromovich is the best looking so far.
Dida, Cafu, Lucio, Roque Junior, Roberto Carlo, Emerson, Ze Roberto, Ronaldinho, Kaka, Adriano, Robinho, Ronaldo
Hardiwv From Brazil, joined Oct 2004, 8780 posts, RR: 51 Reply 6, posted (8 years 7 months 1 week 4 days 20 hours ago) and read 2936 times:
RG's Governing Board will meet tomorrow, Saturday, and a decision regarding the future of the airline is expected.
Portugal's Foreign Minister (on a very timely visit) arrived in Brasilia, on the eve of RG's meeting, and had dinner with the Minister of Defense, who is responsible for civial aviation in Brazil. The Minister stated that Portugal fully supports the proposal made by TAP to buy 20% stake in RG and form a new company combining RG and TP.
This statement brings a new dimension to the future of RG, as TP now has all the full political support of the Portuguese Government. No doubt TP is now the front runner.
Hardiwv From Brazil, joined Oct 2004, 8780 posts, RR: 51 Reply 7, posted (8 years 7 months 1 week 4 days 20 hours ago) and read 2919 times:
Btw, today the Portuguese Minister also met the Brazilian President (Lula) and the major topic of the conversation was TAP's bid to buy RG. Lula requested details of TAP's proposal. TAP is a Portuguese stated owned company.
With the above, TAP emerged as a serious candidate to buy 20% of RG.
Portuguese-based Pestana Group was also mentioned by the Minister.
Hardiwv From Brazil, joined Oct 2004, 8780 posts, RR: 51 Reply 9, posted (8 years 7 months 1 week 4 days 20 hours ago) and read 2901 times:
Quoting PPVRA (Reply 8): Varig has denied TAP has offered anything.
TAP stated otherwise, that it did make an offer. Of course, the Portuguese Minsiter of Foreign Affairs would not speak non-sense to the media...it seems RG is trying to decive the media...it is well known TAP had made an offer, this has been widely discussed in the Portuguese media.
Leelaw From , joined Dec 1969, posts, RR: Reply 13, posted (8 years 7 months 1 week 4 days 16 hours ago) and read 2840 times:
DOW JONES - May 6, 2005:
BRASILIA (AP)--Portugal will give Brazil access to European markets in exchange for more Brazilian investments in the European country, Portuguese Foreign Minister Diogo Freitas do Amaral said Friday.
Amaral said he and Brazil's Vice President Jose Alencar discussed a proposal by Portuguese airline TAP to bail out Brazil's debt-ridden flagship carrier Varig. Amaral didn't give details but said Portugal expects more investment from Brazil.
"What we'd like now is reciprocity...Brazilian investment in Portugal, and we know that many top companies could make an important contribution," Amaral told reporters at the Portuguese embassy....
"...What we told them modestly is that if they want to enter (the European market) through the Portuguese door, it will be wide open," he said.
...Asked about the negotiations between TAP (TPA.YY) and Varig (VAGV4.BR), Amaral said the talks haven't concluded. Varig has an outstanding debt estimated at 9.5 billions reals, or about $3.8 billion.
"The decision is up to the shareholders," he said. "But we won't interfere."
Earlier this week, Portuguese Prime Minister Jose Socrates said TAP, Portugal's state-owned carrier, is negotiating with Varig but that no deal was imminent.
The Portuguese newspaper Jornal de Negocios reported Wednesday that TAP had offered to merge with Varig to form a new airline. Other possible partners include the U.S.-based Texas Pacific Group and Brazilian airlines Gol and Ocean Air.