Portugal Requests Air France-KLM, Lufthansa Raise Bids in TAP Stake Sale
Portugal Seeks Improved Offers for TAP Privatization
By Sergio Goncalves
Final Negotiation Round Initiated
LISBON, Sept 4 (Reuters) - Portugal's government on Friday asked rivals Air France-KLM and Lufthansa to submit improved offers for a minority stake in flag carrier TAP, launching a final round of negotiations after judging both groups' initial bids too close to pick one, Cabinet Minister Antonio Leitao Amaro told a news briefing.
Binding Offers and Assessment
Both European airline groups submitted undisclosed binding offers in July to buy a 44.9% stake in TAP and become its strategic partner. On Tuesday, the government received state holding company Parpublica's assessment of the offers.
Offer Similarities and Negotiation Timeline
Leitao Amaro said the two binding offers "differed in their content, but were assessed as broadly similar overall".
"That is why we decided to launch a final round of negotiations lasting a few weeks, during which we expect the bidders to improve their offers," he told reporters after a cabinet meeting.
Privatization Details and Strategic Importance
Portugal revived the long-delayed privatisation of TAP in July 2025, seeking a strategic airline investor capable of expanding the carrier's international reach and competitiveness.
Employee Stake and Share Options
A further 5% stake has been set aside for employees, with the winning bidder retaining the option to acquire any shares not taken up by staff.
TAP's Strategic Routes and Market Value
TAP's main attraction is its valuable slots linking its Lisbon hub with Brazil, Portuguese-speaking African countries and the United States, routes important for Portugal's diaspora, tourism and investment.
Government Requirements for Strategic Partner
The government has required TAP's future strategic partner to support growth across Portugal's airport network, strengthening operations and connectivity not only in Lisbon but also in Porto, Faro, the Azores and Madeira.
Future Sale of Remaining Stake
Under the privatisation decree, the government may later sell its remaining 50.1% stake to the strategic investor.
(Reporting by Sergio Goncalves, editing by Andrei Khalip)