Air France-KLM and Lufthansa Group have submitted improved bids for a minority stake in TAP Air Portugal, with the Portuguese government expected to announce its preferred bidder next week.
The two aviation groups are competing to acquire up to 44.9 per cent of the state-owned carrier, while an additional 5 per cent stake has been reserved for employees.
Both groups have reportedly increased their offers to more than €1 billion, according to a Bloomberg report, and have also proposed using shares in their respective businesses as part of any future deal for a larger stake in TAP.
Parpública, the state-owned holding company that controls a majority stake in TAP, confirmed on Wednesday 30 September that it had received “improved binding offers” from both groups. The Portuguese government invited the bidders to enter a final round of negotiations last month after receiving “similar” offers from the two groups in July.
The government is expected to announce its preferred bidder by 15 October after reviewing Parpública’s final assessment of the offers.
In a statement, Air France-KLM reiterated its “strong and continued interest” in TAP and said its final offer was for a stake of up to 49.9 per cent.
Lufthansa Group did not disclose the size of its desired stake in TAP, but both bidders have previously said they would make Lisbon a strategic hub if successful.
Air France-KLM CEO Benjamin Smith said: “Over the past four weeks, our team plus our advisors have worked diligently to strengthen our bid, and I am convinced that this revised proposal is the best path forward for TAP, its management, its employees and its customers, as well as for Portugal.”
Air France-KLM said its joint venture partner Delta Air Lines and the SkyTeam alliance “fully support this bid and share the ambition to further increase Portugal’s connectivity, notably on the North Atlantic market”.