Bloomberg News

Lan Posts Record Win Streak on Bet Tam Deal to Be Approved

July 06, 2011

(Updates with closing prices).

July 6 (Bloomberg) -- Lan Airlines SA rose for a 13th day in Santiago trading, a record winning streak, on speculation that Latin America’s largest carrier by market value will receive approval on its takeover of Brazil’s Tam SA.

Lan climbed 2.7 percent to 14,276 pesos at 4 p.m. New York time. Lan was Chile’s most active stock today in value, with 12.3 billion pesos ($27 million) changing hands. Tam gained 2.4 percent to 37.35 reais in Sao Paulo, its fourth day of gains.

“It’s all speculation on a positive ruling,” Pablo Solis, who helps manage about $5 billion for BCI Asset Management in Santiago, said today.

Chile’s antitrust tribunal, known as TDLC, is studying the merger proposal at the request of a consumer defense association. The plan remains to announce a ruling before the end of July, TDLC secretary Alejandro Domic said today in an e- mailed response to questions.

Lan said July 1 that German regulators had approved the tie-up. The deal was first announced in August.

Tam’s Mauricio Amaro, who will be chairman of the combined company, said May 26 he’s “confident, but not sure” of regulatory clearance. The transaction is also subject to approval from Brazil’s antitrust agency, known as Cade.

--Editors: Brendan Walsh, Richard Richtmyer

To contact the reporter on this story: Eduardo Thomson in Santiago at ethomson1@bloomberg.net.

To contact the editor responsible for this story: David Papadopoulos at papadopoulos@bloomberg.net.


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