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AVH - Avianca Holdings SA News Story

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Last Trade - 08/05/20

Micro Cap
Market Cap £n/a
Enterprise Value £n/a
Revenue £2.53bn
Position in Universe th / 6858

Portugal expects to get competing bids for TAP airline

Wed 19th November, 2014 3:50pm
LISBON, Nov 19 (Reuters) - Portugal's government expects to 
receive at least two rival bids for flag carrier TAP, which has 
improved its fundamentals since the last failed attempt to 
privatise the airline in 2012, state secretary for transport 
Sergio Monteiro said on Wednesday. 
    Last week, the government announced the re-launch of the 
privatisation of TAP, in which it plans to sell a 61 percent 
controlling stake to one or several large investors. 
    Monteiro said the process would go ahead even with one 
offer, as happened in 2012 before the only bid was disqualified 
for insufficient financial guarantees, but the government 
expected a better scenario this time around. 
    "Let me be clear about that, we expect that there will be 
two or more bids," he told reporters, adding that TAP was now 
more attractive to investors after having endured the entry of 
low-cost airlines like Ryan Air  RYA.I  and Easyjet  EZJ.L  into 
the Portuguese market since 2012. 
    "TAP has resisted well... Although there is a reduction in 
margins on flights in Europe, we did not see that the  
competition has grown at the expense of TAP's market share. TAP 
maintains the same market share," Monteiro said. 
    "That endurance test has been substantially left behind and 
the company is in a better economic state," he added, noting 
that the fact that TAP had reduced its debt and practically 
turned around its problematic Brazilian unit should help the 
privatisation process. 
    The airline still has a sizeable debt of some 1 billion 
euros ($1.3 billion). 
    In 2012, the government rejected the only valid offer for 
TAP, made by Latin American tycoon German Efromovich, owner of 
AviancaTaca  AVT_p.CN , citing his failure to meet financing 
 (Reporting By Daniel Alvarenga, writing by Andrei Khalip; 
editing by Ralph Boulton) 
 ((;)(351)(213-509-209; Reuters 
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