PhotoLPPT From Portugal, joined Jul 2004, 491 posts, RR: 2 Posted (5 months 6 days 6 hours ago) and read 2401 times:
Breaking News here in Portugal:
The Portuguese Government has just decided *NOT* to accept the offer to sell TP to Mr. Gérman Efromovich... no more details for the moment. So it seems that TP is not getting into private investors in 2012 after all.
yowza From Canada, joined Jul 2005, 4781 posts, RR: 17 Reply 1, posted (5 months 6 days 6 hours ago) and read 2399 times:
Quoting PhotoLPPT (Thread starter): The Portuguese Government has just decided *NOT* to accept the offer to sell TP to Mr. Gérman Efromovich... no more details for the moment. So it seems that TP is not getting into private investors in 2012 after all.
Call me a conspiracy theorist but I somehow believe this is related to the announcement that TP and EK will begin cooperating with each others FFP. Is it totally out of the realm of possibility that a nominated UAE national pops up with a Portuguese passport and a big cheque in Efromovich's place?
santos From United Kingdom, joined Dec 2007, 705 posts, RR: 0 Reply 2, posted (5 months 6 days 5 hours ago) and read 2351 times:
Quoting yowza (Reply 1): Call me a conspiracy theorist but I somehow believe this is related to the announcement that TP and EK will begin cooperating with each others FFP
TP has codeshared with EY for a number of years, and EY has never showed interest in TP.
EK has mentioned many times that they are not interested in TP, Why now?
Quoting PhotoLPPT (Thread starter):
The Portuguese Government has just decided *NOT* to accept the offer to sell TP to Mr. Gérman Efromovich... no more details for the moment. So it seems that TP is not getting into private investors in 2012 after all.
A real shame, TP should have been sold 20 years ago, yet another barrier- I'm sure unions and employees that have been "milking" TP for years are happy.
airbazar From United States of America, joined Sep 2003, 6891 posts, RR: 7 Reply 3, posted (5 months 6 days 5 hours ago) and read 2250 times:
Not a surprise at all. First I never believed that the government really wants to sell the airline.
And then the offer was so ridiculously low (not surprising), it left the government with no other decision but to not sell it. At that price it would have been a fantastic deal for Efromovich, and a terrible deal for Portugal.
PDPsol From United States of America, joined Feb 2004, 998 posts, RR: 6 Reply 4, posted (5 months 6 days 5 hours ago) and read 2103 times:
Quoting airbazar (Reply 3): At that price it would have been a fantastic deal for Efromovich, and a terrible deal for Portugal.
Why a 'terrible deal for Portugal'? The price merely reflected the value of the carrier today. The issue is not cash today that Portugal receives for the carrier, but cash spent tomorrow, and the day after, and the month after that.
Portugal is not interested in owning commercial enterprises that are best left in the management control of sector experts.
777jaah From Colombia, joined Jan 2006, 1401 posts, RR: 2 Reply 5, posted (5 months 6 days 4 hours ago) and read 1933 times:
Quoting airbazar (Reply 3): First I never believed that the government really wants to sell the airline.
In this I agree with you. This process is far from being handled by business experts rather than politicians, and we all know what end up happenning with this recipe.
Quoting airbazar (Reply 3): And then the offer was so ridiculously low (not surprising),
There wasn't any room for a generous offer. The airline is worth nothing at its actual situation.
Quoting airbazar (Reply 3): At that price it would have been a fantastic deal for Efromovich, and a terrible deal for Portugal.
At that price it would've been a good deal deal for Efromovich, but a terrific deal for Portugal's finances. In businees, thing s are woth not what you ask for, but rather what the market is willing to pay for them, and in this case, IIRC, there wasn't a huge line ofcompanies willing to offer any money at all for TP.
Quoting santos (Reply 2): A real shame, TP should have been sold 20 years ago, yet another barrier- I'm sure unions and employees that have been "milking" TP for years are happy.
I bet the portuguese finance minister will have to answer some calls from the EU pretty soon.
Quoting RCS763AV (Reply 5): Maybe the assholes at the portuguese government thought this would mean EK will be interested in TP. Not going to happen
This process was politized long before this. And the deal with EK was probably in the makings for a time now. So, my uneducated guess is that the deal with EK had nothing to do with this.
Next flights: AV BOG-ADZ-BOG, AV-UA BOG-IAD-ORD-IAD-BOG, BOG-FLL-BOG, LA BOG-MIA-BOG J
airbazar From United States of America, joined Sep 2003, 6891 posts, RR: 7 Reply 6, posted (5 months 6 days 2 hours ago) and read 1669 times:
Quoting PDPsol (Reply 4): Why a 'terrible deal for Portugal'? The price merely reflected the value of the carrier today. The issue is not cash today that Portugal receives for the carrier, but cash spent tomorrow, and the day after, and the month after that.
The government can't subsidize the airline, by European law. The airline is not costing the government any money. The government is not spending a dime on the airline, today, tomorrow, the day after, or a month after that.
Quoting 777jaah (Reply 5): There wasn't any room for a generous offer. The airline is worth nothing at its actual situation.
How do you guys figure that? An airline that has been profitable just about every year for the past 10 years, and expects to turn a profit this year despite a recession, and with a market leading presence in Europe-Brazil market not to mention some key African markets. In what fantasy world is the airline "worth nothing"?
Not selling TAP at this price in no way changes Portugal's debt. Portugal's debt is 78 Billion Euros. TAP would have netted the government a mere 35 million Euros. It's a drop in the bucket. They can make that in 1 good profitable year, as they have in the past. It was a joke offer.
LJ From Netherlands, joined Nov 1999, 4149 posts, RR: 1 Reply 7, posted (5 months 5 days 23 hours ago) and read 1398 times:
Quoting yowza (Reply 1):
Call me a conspiracy theorist but I somehow believe this is related to the announcement that TP and EK will begin cooperating with each others FFP. Is it totally out of the realm of possibility that a nominated UAE national pops up with a Portuguese passport and a big cheque in Efromovich's place?
I think this is highly unlikely as one of the requirements of the sale of TP was that TP remained in Star Alliance. Why would EK be interested in this (and all the other requirements the portugese gorvernment have set)?
r2rho From Germany, joined Feb 2007, 2252 posts, RR: 1 Reply 8, posted (5 months 5 days 6 hours ago) and read 928 times:
Quoting airbazar (Reply 3): At that price it would have been a fantastic deal for Efromovich, and a terrible deal for Portugal
As Portugal is under pressure from the EU to give awa...errr sell their national assets, I guess Efromovich thought the government would accept even the lowest offer. I'm glad for Portugal that they didn't.
Quoting 777jaah (Reply 5): In businees, thing s are woth not what you ask for, but rather what the market is willing to pay for them, and in this case, IIRC, there wasn't a huge line ofcompanies willing to offer any money at all for TP.
So you wait until market conditions are better to sell, rather than giving away an important asset. In the meantime, the airline can continue to make money.
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As Portugal is under pressure from the EU to give awa...errr sell their national assets, I guess Efromovich thought the government would accept even the lowest offer. I'm glad for Portugal that they didn't.
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