Tuesday May 3, 8:37 AM EDT
SAO PAULO -(Dow Jones)- The U.S.-based Texas Pacific Group (TPG.XX) is looking at a possible purchase of Brazil's largest airline, Viacao Aerea Riograndense SA (VAGV4.BR), or Varig, local newspaper O Estado de Sao Paulo reported in its Tuesday editions.
The U.S. group has begun an analysis of Varig's financial situation in a process that could extend over 90 days, the newspaper said.
Meanwhile, Varig itself - burdened by huge debts - is analyzing several other acquisition proposals, according to local reports.
Two Brazilian entrepreneurs, Nelson Tanure and German Efromovich, have separately expressed an interest in buying Varig. According to market analysts, Brazil's Planner Group, a Portuguese investment group and a Swiss group have also submitted offers.
If the Texas Pacific Group were to buy a stake in Varig, it would need a Brazilian partner. Under current laws, Brazilian airlines can't be controlled by overseas owners.
So now we know 2 other potential investors, the Texan group and the unnamed Swiss group.
Rumors are that a final decision is expected by this Saturday. IMO, German Efromovich will take the airline, but we'll see...