Hardiwv From Brazil, joined Oct 2004, 8780 posts, RR: 47 Posted (10 years 6 months 2 weeks 4 days 6 hours ago) and read 2940 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.
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.
HEGAN: Euskadiko Aeronautikako eta Espazioko Clusterra
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.
Brasuca From Brazil, joined Mar 2004, 717 posts, RR: 9
Reply 8, posted (10 years 6 months 2 weeks 4 days ago) and read 2782 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.