Avianca Considering $500M Bid from United & $1.9B from Delta this Tuesday

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).

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Comments

    • Good question, cannot find anything and this is the second time around for me to buy the stock. In short, all bids were presumably unsatisfactory and Avianca is not budging until it has to. Who knows when or if it will. I am holding for the time being.

  1. Dec 5, this news came out. Now old news 1.5 months ago. Seems Avianca does not want to give up control. When Virgin was sold to Alaska the process was quick. AVH is wobbling, but still around $10 a share. Without something soon I see the stock slipping back to 8 or less. I bought the stock back in June and saw it go no where. The talks have been going on a long time. Anybody have an insight into Aviancas’s balance sheet?

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