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Mexicana Airline Makes Bid For Rival Carrier Aeromexico

Wednesday 04/10/2017 - Source: Airline Weekly


MEXICO CITY -(Dow Jones)- Mexican airline Grupo Mexicana raised the stakes Wednesday in the battle to acquire rival carrier Consorcio Aeromexico sab ( AMEXICO.MX), offering 2.19 pesos ($0.20) a share.
"Grupo Mexicana's offer is 25% above the highest offer presented to the stock exchange by other investment groups," Mexicana said in a statement.
The offer is equivalent to MXN2.17 billion or about $200 million for all of Aeromexico.
Local businessmen Moises Saba Masri and Alberto Saba Raffoul recently raised their initial bid to $160 million from $100 million after an investor group led by Citigroup's (C) Mexican unit Banamex offered $151 million for the airline.
The government sold Mexicana in late 2015, but rejected as inadequate the offers it received for Aeromexico.
Mexicana said that combined, the two airlines would have 53% of the domestic air travel market at present, but that would fall to below 50% by the end of the year.
The two incumbents have been losing market share to a number of low-cost carriers that have started operating in recent years.
Mexicana said it would be prepared to accept conditions on an acquisition of Aeromexico by the country's antitrust commission.
Aeromexico series A shares trading on the Mexican stock exchange were up 8.5% around 2 p.m. EDT at MXN2.16.


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