LAN Airlines signs purchase agreement for AIRES; Republic boosted by analysis
LAN Airlines (+0.1%) made only a minor gain in a day of declines for North and South American airline stocks on Friday (26-Nov-2010), despite announcing the signing of the definitive purchase agreement for the acquisition of 98.942% of the outstanding shares of AIRES.
Having completed the due diligence process, LAN will acquire AIRES for USD12 million in cash, in addition to assuming net liabilities of approximately USD100 million, which include USD18 million of bank debt. This transaction will provide the opportunity for an affiliate of LAN to participate in the Colombian passenger market allowing for LAN and its affiliates to continue strengthening their regional presence.
See related CAPA Profile: Mergers and Consolidation
TAM (+0.2%) also rose slightly on the news.
Republic Airways (+4.8%) was the biggest gainer of the day after SmarTrend advised investors to watch for a potential rebound in the carrier’s stock. The carrier is currently trading below its 50-day moving average of USD8.30 and is expected to find support at its 200-day moving average of USD6.64. Republic ended trading at USD.
North & South America selected airlines daily share price movements (% change): 26-Nov-2010