hardiwv
Posts: 4341
Joined: Sat Oct 09, 2004 11:30 pm

Matlin Patterson Makes Proposal To Buy Varig

Thu Oct 20, 2005 12:04 am

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,
 
HEGAN
Posts: 204
Joined: Sat Feb 26, 2005 1:11 am

RE: Matlin Patterson Makes Proposal To Buy Varig

Thu Oct 20, 2005 12:14 am

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
 
kiwiandrew

RE: Matlin Patterson Makes Proposal To Buy Varig

Thu Oct 20, 2005 12:19 am

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
 
hardiwv
Posts: 4341
Joined: Sat Oct 09, 2004 11:30 pm

RE: Matlin Patterson Makes Proposal To Buy Varig

Thu Oct 20, 2005 12:20 am

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?
 
flyingbabydoc
Posts: 1059
Joined: Wed Oct 19, 2005 6:12 pm

RE: Matlin Patterson Makes Proposal To Buy Varig

Thu Oct 20, 2005 12:27 am

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
Marriage is the art of turning a lover into a relative
 
hardiwv
Posts: 4341
Joined: Sat Oct 09, 2004 11:30 pm

RE: Matlin Patterson Makes Proposal To Buy Varig

Thu Oct 20, 2005 12:39 am

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

No need to be worried in my opinion.

Rgs,
 
HEGAN
Posts: 204
Joined: Sat Feb 26, 2005 1:11 am

RE: Matlin Patterson Makes Proposal To Buy Varig

Thu Oct 20, 2005 1:00 am

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
 
WINGS
Posts: 2312
Joined: Tue May 31, 2005 1:36 am

RE: Matlin Patterson Makes Proposal To Buy Varig

Thu Oct 20, 2005 3:41 am

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.
 
Brasuca
Posts: 684
Joined: Wed Mar 10, 2004 12:09 am

RE: Matlin Patterson Makes Proposal To Buy Varig

Thu Oct 20, 2005 6:00 am

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

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