Air France-KLM, Lufthansa file binding bids for TAP

Air France-KLM and Lufthansa have submitted binding offers to buy 44.5% of TAP, Portugal’s state-owned airline, Parpública said on Wednesday, moving the privatisation into a decisive phase with the government aiming to choose a partner in September.

Parpública, the state holding company managing public stakes, said it had received the two bids in the third stage of the sale process. The offers cover 44.5% of TAP’s share capital, a stake that could rise if the 5% reserved for employees is not fully taken up. The bids also include a firm financial offer and a binding industrial and strategic plan for TAP’s future.

Lufthansa said its proposal is aimed at building a long-term partnership and making TAP the group’s airline for the South Atlantic, with Lisbon as a strategic hub. Air France-KLM said its plan covers TAP’s passenger, cargo, loyalty and maintenance businesses, and includes support from Delta Air Lines, its partner in the transatlantic joint venture. The Franco-Dutch group also said it would make Lisbon its only hub in southern Europe.

According to the terms outlined by Parpública, the company now has 30 days to assess the documentation and deliver a report to the government, although that deadline can be paused if further information is requested from the bidders. After receiving the report, the government may still invite one or both candidates to submit an improved final offer.

Originally published at Eco.pt