Back in early June we reported that Delta and United were among the top contenders bidding for a controlling stake in Colombian carrier Avianca. The New York Times, now has details on the final bids submitted by Delta, United, and Copa late last week.
United offered a $500 million loan to Avianca and potentially one of its investors. Copa pursued a merger that would value Avianca at more than $2 billion, or a 150 percent premium to its share price last week. Delta offered more than $1 billion in cash, a majority of which would go to buy out most of one owner’s investment arm, with the rest going to Avianca. The Delta bid implied a $1.9 billion valuation.
Avianca will convene a special committee on Tuesday to decide whether to accept any of these bids or to kick off another round of bidding.
Avianca serves more than 100 destinations in 28 countries, with 180 airplanes operating 5,607 weekly departures. The carrier of course also operates the very popular LifeMiles loyalty program (which a sale to UA or DL would probably mark the end of in the future…so let’s hope for a stake instead).