Portugal Colonial - Portugal extends talks to privatise national carrier TAP

Portugal had been expected to announce its choice to take over the airline, but after a government meeting spokesman Antonio Leitao Amaro said the offers submitted by both contenders were very close.

It made sense to pursue further talks to obtain improvements, he added. Following talks that could last several weeks, the government will choose one of the two contenders and hold final negotiations.

The government intends to sell up to 49.9 percent of TAP to a strategic investor, with staff to hold five percent.

Air France-KLM said following the announcement that it would participate in the new round of negotiations, expressing its "steady and determined" interest in becoming the controlling shareholder in TAP.

"Air France-KLM's July 29 offer is a strategic plan that encompasses the full range of TAP's activities: passenger transport, cargo, loyalty programme and aircraft maintenance," the company said in a statement.

TAP, which was renationalised in 2020 to stem losses from the Covid-19 pandemic, is among the few remaining state-owned carriers in Europe.

The airline has around 7,700 employees and a fleet of around 100 Airbus planes.

A.Silveira--PC