SHARES OF LAN AND TAM FALL ON MERGER SUSPENSION

Dino D'Amore
By Dino D'Amore February 1, 2011 15:15

SHARES OF LAN AND TAM FALL ON MERGER SUSPENSION

Shares of LAN Airlines and TAM declined yesterday upon the news on Friday that the Chilean antitrust court, TDLC, has moved to suspend their proposed merger.

The Chilean court ruled to suspend the merger while it reviews a petition filed by private consumer-rights group the National Consumers Corporation.

The group, known locally as Conadecus, argues that the routes between Chile’s capital of Santiago and the Brazilian city of São Paulo, as well as between Santiago and Rio de Janeiro, will be monopolised by one player if the merger goes through.

LAN says it is “evaluating the court’s decision” said a company spokesman. Shares in LAN were down 1.9% at 13,690 Chilean pesos ($28.35), after falling as much as 4% in earlier trading yesterday. On the New York Stock Exchange, LAN’s American depositary shares were down 17 cents at $28.17.

TAM shares were down 4.9% on the Brazilian stock market at 37.50 Brazilian reais ($22.32), the biggest loser by far in Monday’s morning session. On the New York Stock Exchange, TAM’s American depositary shares were down 1.2% late Monday afternoon at $22.26.

Dino D'Amore
By Dino D'Amore February 1, 2011 15:15
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