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 Business News | October 2007 
Investment Groups in Bidding War for Mexican Airline Aeromexico
 Lisa J. Adams - Associated Press
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| | Aeromexico and Mexico's other major carrier, Mexicana, were part of the government-owned holding company Cintra SA, which put the two carriers up for sale in 2005. |
Mexico City – Two investment groups launched a bidding war Tuesday for one of Mexico's largest airlines, Aeromexico, after the government announced it would accept the latest offer from a father-son team if it did not receive higher offers by midday.
Mexico's deposit insurance agency IPAB, which owns a stake in Consorcio Aeromexico SAB, said in a statement it would accept Alberto Saba Raffoul and Moises Saba Masri's bid of 1.84 billion pesos ($170 million), or 1.86 pesos ($0.17) a share, for control of the carrier.
That prompted an investment group that includes Citigroup Inc.'s Banamex unit to raise its bid to 1.85 billion pesos ($171 million), or 1.87 pesos ($0.17) a share, from 1.74 billion.
The Sabas then upped their own offer to 1.89 billion pesos ($174 million), or 1.90 pesos ($0.18) a share.
Aeromexico and Mexico's other major carrier, Mexicana, were part of the government-owned holding company Cintra SA, which put the two carriers up for sale in 2005. The Federal Competition Commission wants to generate competition in the domestic airline market.
The government sold Mexicana to hotel group Grupo Posadas SA, but rejected previous bids for Aeromexico as too low. The government currently owns 62 percent of Aeromexico.
Mexicana made a 2.17 billion-peso ($200 million) bid for Aeromexico, but the commission blocked the offer last Thursday. The airline has appealed.
Aeromexico's local A shares were up 15 percent at 2.18 pesos ($0.20) in afternoon trading. |
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