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ScanFlyer Mile High Club
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February 2, 2005
Flag carrier TAP Portugal has asked PGA-Portugalia Airlines for more time to study more closely a possible partnership or merger, TAP Chief Executive Fernando Pinto said.
"Negotiations with Portugalia have stopped. But we have asked for two weeks to study what would be needed to continue with the negotiation process," he told reporters before a news conference late on Tuesday to unveil TAP's new name and an updated red-and-green logo.
TAP Portugal changed its name from TAP-Air Portugal as part of a campaign to change its image.
Pinto said that if TAP bought PGA, which is controlled by Grupo Espirito Santo, it would not need government approval. If the companies do a share exchange, it would need government approval, he said.
Grupo Espirito Santo could control only up to 10 percent if a share swap were done, Pinto said.
"We asked for time to better analyse the evaluation, we would have a final evaluation at the end of the next week," he said.
Joao Ribeiro da Fonseca, chief executive of Portugalia, declined to comment on the talks at the event.
The decision is far off and the companies are at very distant positions, said Michael Conolly, chief financial officer of TAP.
TAP expects to post positive results in 2005, even factoring in the same increased fuel prices seen in 2004, he said.
(Reuters)
February 2, 2005
Flag carrier TAP Portugal has asked PGA-Portugalia Airlines for more time to study more closely a possible partnership or merger, TAP Chief Executive Fernando Pinto said.
"Negotiations with Portugalia have stopped. But we have asked for two weeks to study what would be needed to continue with the negotiation process," he told reporters before a news conference late on Tuesday to unveil TAP's new name and an updated red-and-green logo.
TAP Portugal changed its name from TAP-Air Portugal as part of a campaign to change its image.
Pinto said that if TAP bought PGA, which is controlled by Grupo Espirito Santo, it would not need government approval. If the companies do a share exchange, it would need government approval, he said.
Grupo Espirito Santo could control only up to 10 percent if a share swap were done, Pinto said.
"We asked for time to better analyse the evaluation, we would have a final evaluation at the end of the next week," he said.
Joao Ribeiro da Fonseca, chief executive of Portugalia, declined to comment on the talks at the event.
The decision is far off and the companies are at very distant positions, said Michael Conolly, chief financial officer of TAP.
TAP expects to post positive results in 2005, even factoring in the same increased fuel prices seen in 2004, he said.
(Reuters)
