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Post by ozgringo on Sept 29, 2016 19:50:08 GMT -5
From www.ft.com/content/2a4e9dfa-85c7-11e6-8897-2359a58ac7a5Elliott Management, the US hedge fund, is leveraging its position as lender to Avianca’s majority shareholder to force Colombia’s flagship airline into a sale or strategic partnership. Elliott provided loans to Germán Efromovich, the carrier’s controlling shareholder, more than a year ago, say people with knowledge of the financing arrangement. The loans made by Elliott to Mr Efromovich, a Bolivian-born tycoon who bought Avianca out of bankruptcy in 2004, are secured against the value of his 51 per cent stake in the carrier and are linked to its share price — meaning the hedge fund stands to gain if the airline is sold. Senior managers at Avianca said talks over a potential sale were “speculation”, but confirmed the company was “seeking a strategic partner” to counter other regional alliances. Delta, United and Panama’s Copa Airlines are considering bids for all or part of Avianca, say people close to the talks with Avianca. Avianca is seen as one of the last available assets in Latin America for two of the three large US airlines that are competing to secure partnerships with local carriers to provide greater access to the region. Avianca is part of the Star Alliance network. Bankers say this has motivated United to consider a bid to ensure the Colombian airline does not slip into a rival’s hands. Delta’s SkyTeam network lacks significant presence in Colombia and Bolivia, and could improve access to both markets by snatching up Avianca.
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Post by Deleted on Sept 29, 2016 21:00:09 GMT -5
Another nail in the coffin of takeovers--and more reduced service because of supposed shareholder value--- One of the few airlines where the service is still half way decent--the flight attendants under 30-- and there to serve one--rather than one serving them-- it is a con game---try that with a restaurant chain and it would go broke--
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Post by ozgringo on Sept 29, 2016 23:36:28 GMT -5
Another nail in the coffin of takeovers--and more reduced service because of supposed shareholder value--- One of the few airlines where the service is still half way decent--the flight attendants under 30-- and there to serve one--rather than one serving them-- it is a con game---try that with a restaurant chain and it would go broke-- Avianca shareholders have done nicely this year. The stock is roughly up 50%.
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Post by Deleted on Sept 30, 2016 8:24:07 GMT -5
If there is a "strategic union", I hope it is with COPA.
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Post by coolcoil on Sept 30, 2016 9:29:45 GMT -5
If there is a "strategic union", I hope it is with COPA. I am curious - why COPA? On the face of it, that seems to me to be one of the most anti-competitive options, though none of them are good.
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Post by wildstubby on Sept 30, 2016 9:41:13 GMT -5
Hmmmmm, I thought there was something about this a few months back. You have the fresh LATAM alliance and some of Avianca's routes, (at least to the US) are operated by TACO airlines. Of course this might be nothing more to boost the stock.
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Post by livinginmedellin on Sept 30, 2016 10:14:00 GMT -5
Yes there was something about this a few months back. In June it was reported that United, Delta, COPA and China's HNA Group had shown interest in buying Avianca.
Delta Air Lines Inc., United Continental Holdings Inc. and Copa Airlines SA reportedly even made non-binding offers for a minority stake in Avianca Holdings, but nothing happened.
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Post by Deleted on Oct 1, 2016 7:08:26 GMT -5
If there is a "strategic union", I hope it is with COPA. I am curious - why COPA? On the face of it, that seems to me to be one of the most anti-competitive options, though none of them are good. If Avianca joins United or Delta, I'm concerned that service will take a nose dive. COPA and Avianca still provide excellent, legacy-style service unlike US airlines. I'm betting that will continue if those two companies join forces. I fly COPA and Avianca exclusively... even if I have to pay a little more.
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Post by wildstubby on Oct 1, 2016 8:26:26 GMT -5
LAN, (Now LATAM) wasn't too bad. Their flight attendants could have been runway models. They were sharply dressed also!
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