Air France-KLM gains Brazil foothold with $100 mln Gol deal
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SAO PAULO, Feb 19 (Reuters) - Air France-KLM SA will invest $100 million in Brazilian airline Gol Linhas Aereas Inteligentes SA as the European carrier seeks to take advantage of a potential surge in travel demand during the coming soccer World Cup and the 2016 Olympics, both to take place in Brazil.
Under terms of the transaction, Air France-KLM will buy $52 million of Gol preferred shares at $12.23 each, Gol said in a securities filing on Wednesday. The remaining $48 million will come in the form of commercial agreements and a bonus based on the achievement of potential cost savings.
Air France-KLM will pay Gol a premium of about 169 percent on its stock, based on Wednesday's closing price of $4.55, according to Thomson Reuters calculations. One of Gol's preferred shares traded in Brazil equals one U.S. traded share. Gol's shares closed at 10.93 reais in Sao Paulo on Wednesday.
Brasil government absolute P.O.S. meddle in everything ! They ruin Petrobras, now they make the threat of opening domestic airline market for World Cup. ABEAR is very powerful and will not allow this to happen. #$%$ Brasilian Prime Minister C U Next Tuesday can threat all she want but she cannot derail the strateg @ my compane.
IF SHE THE IDIOT PRIME MINISTER OPEN SKY, GOL CUT MORE CAPCIT JAJAJAJAJAJA.