Varig's main shareholder, the Ruben Berta Foundation (FRB), has expressed strong support for equity bids by TAP Portugal and Pestana, the Portuguese tourism group, as talks continue behind closed doors over which of five bidders will be picked to hold equity stakes in Brazil's flag carrier.
Even though the FRB will relinquish its control as part of Varig's restructuring, it has strong views about who should take over and exercises considerable political influence. Its main concern appears to be to find a good long-term fit for the carrier.
The Portuguese bidders are limited by Brazil's cap on foreign investment to 20%, leaving room for a combination of Portuguese and domestic investors. If the Portuguese win out, that would bump the US group, Texas-Pacific, but two Brazilian entrepreneurs are still in the running – media owner Nelson Tanure and German Efromovich, who owns Colombia's Avianca.
Source: Airline Business
