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ScanFlyer Mile High Club
TAP Portugal, Varig close to deal
(Source : Reuters, May 16, 2005)
TAP Portugal and Varig have signed a memorandum of understanding to help resolve Varig's financial problems, a source said Monday. The source did not elaborate, but said a statement would likely come from the companies later Monday. Portuguese daily Publico reported Monday that TAP CE Fernando Pinto said that under the deal TAP would help manage Varig. TAP has three weeks to conclude the first phase of the agreement, which was signed in Brazil Saturday, the newspaper said. Pinto said that TAP ultimately wants to acquire 20% of Varig's capital, the maximum allowed under Brazilian law, Publico reported. However, Pinto said in a letter to workers earlier this month that the privately held airline had not proposed a merger.
(Source : Reuters, May 16, 2005)
TAP Portugal and Varig have signed a memorandum of understanding to help resolve Varig's financial problems, a source said Monday. The source did not elaborate, but said a statement would likely come from the companies later Monday. Portuguese daily Publico reported Monday that TAP CE Fernando Pinto said that under the deal TAP would help manage Varig. TAP has three weeks to conclude the first phase of the agreement, which was signed in Brazil Saturday, the newspaper said. Pinto said that TAP ultimately wants to acquire 20% of Varig's capital, the maximum allowed under Brazilian law, Publico reported. However, Pinto said in a letter to workers earlier this month that the privately held airline had not proposed a merger.
