AR385
Topic Author
Posts: 6763
Joined: Fri Nov 07, 2003 8:25 am

Cintra And Copa

Sun May 15, 2005 6:00 pm

Apparenty it has been announced that CO is ready to get rid of COPA. I believe it can potentially be a good opportunity for CINTRA (aka AM, MX, etc) to buy it. Anybody agrees?
 
TACAA320
Posts: 7153
Joined: Fri Aug 06, 2004 3:03 am

RE: Cintra And Copa

Sun May 15, 2005 11:19 pm

Sounds great. All three are good airlines. Just two questions: 1) Are MX and AM still for sale? 2) Is the CO decision a real one or just pure speculation? [I'm not sure about this point since I feel some grade of "doubts" about this point in another thread].
'Science without religion is lame, religion without science is blind'. Albert Einstein
 
commavia
Posts: 10117
Joined: Mon Apr 25, 2005 2:30 am

RE: Cintra And Copa

Sun May 15, 2005 11:26 pm

Quoting AR385 (Thread starter):
I believe it can potentially be a good opportunity for CINTRA (aka AM, MX, etc) to buy it.

Isn't CINTRA in the process of getting out of the airline business by devesting themselves of both AM and MX?

Quoting AR385 (Thread starter):
Are MX and AM still for sale?

I believe they are. IIRC, the head of CINTRA was in Texas a few weeks ago talking about foreign investment opportunities in Mexico, and AM and MX specifically. I think the Mexican government is smart to be getting serious about privatizing both companies so they can effectively compete with each other and new entrants in the internal Mexican market.

Quoting AR385 (Thread starter):
Is the CO decision a real one or just pure speculation?

Nobody knows for sure. There was speculation last week in a Reuters article that CO is exploring their options regarding selling assets like their remaining 8.5% stake in ExpressJet, Continental Micronesia division and their 49% holding in Copa. If CO is going to sell its CM stake, it is almost certain that a deal is not imminent, but could happen down the road.
 
EddieDude
Posts: 6305
Joined: Fri Nov 14, 2003 10:19 am

RE: Cintra And Copa

Mon May 16, 2005 1:14 am

As mentioned, AM and MX will be sold separately and it is going to be very difficult for the new owners of each airline to embark in another acquisition, especially CM's, because it would command a high price due to the company's profitability and growth prospects. That said, it would be an awesome complement to AM's route network because both carriers operate 737NG planes and it would finally give AM real presence in Central and South America. I guess the only shot is that CO takes this slowly so that whoever acquires AM or MX has time to put together some money to make the purchase. The possibility, in my opinion, is very, very remote.

One last thing I was forgetting. whoever acquires CO's stake in CM would be acquiring only a 49% stake since the remaining 51% is in the hands of Panamanian investors.
Next flights: MEX-LAX AM 738, LAX-PVG DL 77L, SHA-PEK CA 789, PEK-PVG CA A332, PVG-ORD MU 77W, ORD-MEX AM 738
 
pezetaroi
Posts: 62
Joined: Thu Dec 18, 2003 8:34 am

RE: Cintra And Copa

Mon May 16, 2005 3:08 am

Not at all, why would CINTRA want to purchase another airline if they still don't know who's going to buy them, besides the fact that the government wants to sell CINTRA asap?
 
AR385
Topic Author
Posts: 6763
Joined: Fri Nov 07, 2003 8:25 am

RE: Cintra And Copa

Mon May 16, 2005 3:13 am

Following on EddieDude's line of thinking and of TACAA320, I also think it would be a great acquisition for CINTRA as a group. I believe if MX or AM go at it separately they won't have the cash or the know-how for such an operation (Aeroperu comes to mind) I think it should definitely be a CINTRA acquisition. If such a possibility comes to fruition, it can even be worth post-poning AM and MX's privatization so can CINTRA go and acquire CM.

Now, about owning just 49% I don't think that is a problem as long as the final arrangement gives CINTRA at least some decisive management control. Anybody knows what's the deal with CO?.

I insist, someone should go and wake CINTRA up to this opportunity, if it becomes available. Unfortunately, at this point it might be just a dreamy speculation.
 
2travel2know
Posts: 2236
Joined: Sun Apr 10, 2005 7:05 am

RE: Cintra And Copa

Mon May 16, 2005 4:30 am

I belive CM panamanian owners - Grupo Motta - does have the first option for those 49% that they sold to CO a couple of years ago.
When looking for cash and alliances, the CM owners studied who would be more beneficial for them and won't bother over the control of the company, CO was the best at that time.
If Grupo Motta wants, they would buy that 49% from CO rightaway and sell some % to other investors themselves.

After they purchased 85% of Colombia's Aerorepublica, that airline means a lot to CM now, but isn't as much important as keeping those 49% away from potential hostile partners.

I don't see CM looking forward to have its stock in hands of CINTRA.
Maybe they will let Aerorepublica go mexican instead?
I don't work for COPA Airlines!
 
EddieDude
Posts: 6305
Joined: Fri Nov 14, 2003 10:19 am

RE: Cintra And Copa

Mon May 16, 2005 10:13 am

It sounds very logical that Grupo Motta might want to exercise their option to acquire the 49% it doesn't already own.

On the other hand, even though CM would be a good complement to AM, I think CINTRA will never embark in another acquisition. The only reason why CINTRA exists at the moment is to sell AM and MX at a price as high as possible. Once CINTRA has divested of all its assets it will liquidate.
Next flights: MEX-LAX AM 738, LAX-PVG DL 77L, SHA-PEK CA 789, PEK-PVG CA A332, PVG-ORD MU 77W, ORD-MEX AM 738

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