Chile freezes TAM/LAN marger
Jan 30, 2011, 5:27 am
#1
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Chile freezes TAM/LAN marger
The Chilean competition tribunal has put a hold on the TAM/LAN merger. It seems nobody is really certain if that is just a delay or as serious threat to the merger, but it did seem to be unexpected.
Many people expected Brazil to be the stumbling block. If the Chile issues are resolved Brazil may still prove to be a problem.
In any event, speculation about the surviving alliance seems premature.
The link to this mornings O Globo article is below, and below that is the Google Translate version in English.
http://oglobo.globo.com/economia/mat...-923638392.asp
Chilean Court freezes merger between TAM and LAN for consultations
SANTIAGO (Reuters) - The court of protection to competition in Chile has put on hold to research the process of fusion between the LAN and TAM airlines, which could delay or frustrate the attempt to create one of the largest companies in the world.
In mid-January, LAN and TAM determined the terms for joining the operations of both companies in a period between six and nine months. With the transaction, all shares of TAM with voting rights should be acquired by a new Chilean company, the Holdco 1. The statement said 80% of the shares of Holdco 1 with voting rights will be acquired and maintained indirectly held by the Amaro family through a new company in Chile, Chile, PTE, and 20% of the shares with voting rights will be acquired and maintained power in the LAN, and 100% of the shares without voting rights will be acquired and maintained power in the LAN. In practice, the agreement sets a purchase of the LAN, which will become Latam by TAM.
A consumer association of Chile asked the court an opinion on the appropriateness of according to regulations of the country. The court accepted the proceeding, which impedes the progress of the process.
"Lift up the operation in the meantime consulted," the court said in a resolution published on the Internet.
Many people expected Brazil to be the stumbling block. If the Chile issues are resolved Brazil may still prove to be a problem.
In any event, speculation about the surviving alliance seems premature.
The link to this mornings O Globo article is below, and below that is the Google Translate version in English.
http://oglobo.globo.com/economia/mat...-923638392.asp
Chilean Court freezes merger between TAM and LAN for consultations
SANTIAGO (Reuters) - The court of protection to competition in Chile has put on hold to research the process of fusion between the LAN and TAM airlines, which could delay or frustrate the attempt to create one of the largest companies in the world.
In mid-January, LAN and TAM determined the terms for joining the operations of both companies in a period between six and nine months. With the transaction, all shares of TAM with voting rights should be acquired by a new Chilean company, the Holdco 1. The statement said 80% of the shares of Holdco 1 with voting rights will be acquired and maintained indirectly held by the Amaro family through a new company in Chile, Chile, PTE, and 20% of the shares with voting rights will be acquired and maintained power in the LAN, and 100% of the shares without voting rights will be acquired and maintained power in the LAN. In practice, the agreement sets a purchase of the LAN, which will become Latam by TAM.
A consumer association of Chile asked the court an opinion on the appropriateness of according to regulations of the country. The court accepted the proceeding, which impedes the progress of the process.
"Lift up the operation in the meantime consulted," the court said in a resolution published on the Internet.
Jan 31, 2011, 5:17 am
#3
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Join Date: Jan 2008
Location: Rio de Janeiro, Miami, Nice
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Me too. I wonder if it will happen at all, but I am too uncertain to hazard a guess one way or the other.