Efrómovich and Neeleman, the two heavyweight contenders for control of state airline TAP, have until June 5 to submit improved offers for the airline, should they wish to.
Germán Efromovich and David Neeleman (pictured) have passed the first big hurdle and have had their opening bids accepted by the government but, as the treasury clearly senses that it has the upper hand, the bidders have been asked to go away and have a think about raising their respective offers for buying the 61% stake up for grabs.
On analysing the initial bids, the government could not identify a clear winner. The Parpública report on the original three offers rejected one and selected two but made no recommendation, giving each ‘equal merit.’
David Neeleman, the owner of airline ‘Blue’, and Germán Efromovich who controls the Colombian airline ‘Avianca’ have proposed a recapitalisation for TAP ranging between €250 million and €350 million, around 50 additional aircraft to fly the TAP brand and between €25 million and €30 million for the shares.
The Portuguese businessman Pais do Amaral did not deliver a binding offer, wanting more time to assess the damage done by the recent two weeks pilot strike, and is out of the race.
This is the only chance for the businessmen to up their offers and the government wants to see 'improved proposals' that are binding and final. The final decision is scheduled for sometime in June.
Portugal’s hoteliers gave the thumbs up to the sale of TAP with than two thirds (68%) of the Association of Portugal Hospitality members agreeing that this was the best course of action. A further 21% said that TAP should remain state owned.
However, only 8% of those surveyed believed that the current process will successfully be completed.
