Sponsor Message:
Civil Aviation Forum
My Starred Topics | Profile | New Topic | Forum Index | Help | Search 
Matlin Patterson Makes Proposal To Buy Varig  
User currently offlineHardiwv From Brazil, joined Oct 2004, 8780 posts, RR: 50
Posted (8 years 10 months 2 weeks 6 days 7 hours ago) and read 2234 times:

US Investment Fund Matlin Patterson is making today a proposal to buy the entire shares of VARIG.

Matlin Patterson had made a proposal before to buy RG's cargo company VarigLog but now changed its proposal to buy the whole airline and its subsidiaries VarigLog, VEM, and SATA.

A top representative from Matlin Patterson is currently at RG's Board meeting making the official presentation of the proposal. Government sources have also confirmed today that Matlin Patterson intended to buy the whole VARIG Group. The Government, which is the biggest debtor of RG, is participating in the decision-making process.

It is expected that the US Group will associate itself to other Brazilian Groups and receive official backing (i.e. loan) from the National Development Bank.

Rgs,

8 replies: All unread, jump to last
 
User currently offlineHEGAN From Spain, joined Feb 2005, 211 posts, RR: 0
Reply 1, posted (8 years 10 months 2 weeks 6 days 6 hours ago) and read 2217 times:

It sounds strange to me: now that TAP has a share in Varig and manages it and seems like positive resoults will come, looks a bit late to propose this operation.

It can happen, sure, but if an Investment Fund buy all the Varig Group, we can say goodbye to Varig as a Group. I prefer the TAP solution, that know what they are doing.

Agur,
HEGAN

[Edited 2005-10-19 17:16:00]


HEGAN: Euskadiko Aeronautikako eta Espazioko Clusterra
User currently offlineKiwiandrew From New Zealand, joined Jun 2005, 8557 posts, RR: 13
Reply 2, posted (8 years 10 months 2 weeks 6 days 6 hours ago) and read 2194 times:
Support Airliners.net - become a First Class Member!

Quoting HEGAN (Reply 1):
now that TAP has a share in Varig and manages it

I thought that TP was going to buy a share - but that it is all on hold while RG works its way through the Brazilian equivalent of Chapter 11



Moderation in all things ... including moderation ;-)
User currently offlineHardiwv From Brazil, joined Oct 2004, 8780 posts, RR: 50
Reply 3, posted (8 years 10 months 2 weeks 6 days 6 hours ago) and read 2192 times:

Quoting HEGAN (Reply 1):
now that TAP has a share in Varig and manages it

TP neither manages nor has shares in RG. The only formal connection between RG and TP is that are part of StarAlliance and TP's CEO was the former CEO of RG.

TP would never have the money to buy RG.

Quoting HEGAN (Reply 1):
but if an Investment Fund buy all the Varig Group, we can say goodbye to Varig as a Group

Why?


User currently offlineFlyingbabydoc From , joined Dec 1969, posts, RR:
Reply 4, posted (8 years 10 months 2 weeks 6 days 6 hours ago) and read 2183 times:

Quoting Hardiwv (Thread starter):
It is expected that the US Group will associate itself to other Brazilian Groups and receive official backing (i.e. loan) from the National Development Bank.

I have heard rumors (sorry, no specific source) that LH would be interested in RG. Any truth to that?

Second question: I am supposed to fly RG to Brazil in December... any ideas of when this deal will take place? Should I start to be worried?  worried 

Cheers

Alex


User currently offlineHardiwv From Brazil, joined Oct 2004, 8780 posts, RR: 50
Reply 5, posted (8 years 10 months 2 weeks 6 days 6 hours ago) and read 2160 times:

Quoting Flyingbabydoc (Reply 4):
Should I start to be worried?

No need to be worried in my opinion.

Rgs,


User currently offlineHEGAN From Spain, joined Feb 2005, 211 posts, RR: 0
Reply 6, posted (8 years 10 months 2 weeks 6 days 6 hours ago) and read 2145 times:

Quoting Kiwiandrew (Reply 2):
I thought that TP was going to buy a share - but that it is all on hold while RG works its way through the Brazilian equivalent of Chapter 11

It's true: TAP proposed in May to buy a shake of Varig (20%) and merge both airlines, but has not do anything. I don't know why but I thought they actually had bought it.

Quoting Hardiwv (Reply 3):

Why?

Because they will probably (and maybe would be the best thing) separate the different companies of the Group and manage them independently, in order to have more revenues when they sell them again.

I still think the TAP option is better: now TAP is a profitable airline, and at least seem they know what they are doing. This would be a good merger (in the type of AF-KL, with separate brands, operations,...) and would become the first airline from two continents.

Agur,
HEGAN



HEGAN: Euskadiko Aeronautikako eta Espazioko Clusterra
User currently offlineWINGS From Portugal, joined May 2005, 2831 posts, RR: 68
Reply 7, posted (8 years 10 months 2 weeks 6 days 3 hours ago) and read 2104 times:

Quoting Hardiwv (Reply 3):
TP would never have the money to buy RG.

That may not be the case. On Monday Diario Economico published an article about Taps willingness to inject 83 Million Euros (100Million US) into Varig for its financial recuperation. This move would allow Tap a possible stake of 20% participation of Varig.


Sorry folks only in Portuguese,
http://www.diarioeconomico.com/edicion/noticia/0,2458,676462,00.html

Regards,
Wings



Aviation Is A Passion.
User currently offlineBrasuca From Brazil, joined Mar 2004, 717 posts, RR: 11
Reply 8, posted (8 years 10 months 2 weeks 6 days 1 hour ago) and read 2076 times:

Quoting Flyingbabydoc (Reply 4):
I have heard rumors (sorry, no specific source) that LH would be interested in RG. Any truth to that?

It might well happen. The easiest way for LH to compete with other Europeans Airline in Brazil is with VARIG. And they manage a very firm relation for sometime now. But they should have made proposal already if it was likely to happen, but nothing so far.

Quoting HEGAN (Reply 6):
I still think the TAP option is better: now TAP is a profitable airline, and at least seem they know what they are doing. This would be a good merger (in the type of AF-KL, with separate brands, operations,...) and would become the first airline from two continents.

Brazilian Law doesn't allow foreign companies to buy more than 20% share in here. Don't ask me why, I don't really know. That's the way it is, despite the press advertised that such law is under review.
There are other means by which TAP could buy more than 20% stake in VARIG: creating one separate (brazilian) company that could therefore buy as much as they want. Other investors interested in RG have already mentioned such solution.



Varig, Varig, Varig
Top Of Page
Forum Index

This topic is archived and can not be replied to any more.

Printer friendly format

Similar topics:More similar topics...
GOL Makes Proposal To Buy Varig. posted Tue Apr 5 2005 15:32:53 by PPVRA
Russian Oligarch To Buy Varig posted Sat May 6 2006 19:11:02 by Concentriq
TAP Offered To Buy Varig Stake posted Wed May 4 2005 18:18:06 by Leelaw
Varig To Buy 50 Planes In August posted Thu Aug 10 2006 23:38:58 by Leelaw
Pestana Group To Buy 20% Of Varig? posted Thu Mar 10 2005 16:55:28 by Bongo
TAP To Buy Up To 20% Of Varig posted Sun Jun 6 2004 02:05:12 by Erj190
KLM To Buy Six Boeing 737 posted Mon Nov 13 2006 19:44:56 by AeroPiggot
Cathay Pacific To Buy 5 Boeing 747s posted Tue Nov 7 2006 14:29:16 by CaptainTim
TAP To Buy PGA (NI) - Confirmed posted Tue Oct 31 2006 15:45:45 by Ptknight
German Govt. To Buy Into Airbus Via The Back Door? posted Sun Oct 29 2006 15:17:47 by NAV20