Portugal to unwind TAP Air privatisation

Portugal’s government has reached an agreement with investors to unwind the privatisation of TAP Air Portugal in a deal that leaves the country’s flag carrier under private management but gives the state a veto over strategic decisions. Atlantic Gateway, the private consortium that purchased 61% of TAP last year, agreed over the weekend to allow the state to lift its stake from 34 to 50% and share control of the heavily-indebted airline. António Costa, the socialist prime minister who took office in November, had made an election pledge to reverse the previous centre-right government’s privatisation of TAP. The sell-off, tabled during Portugal international bailout programme, was strongly opposed by pilots and opposition parties. Lisbon has agreed to pay Gateway, a joint venture between JetBlue founder David Neeleman and Portuguese bus company owner Humberto Pedrosa, E1.9m to increase the government’s stake to 50%. A planned sale of 5% of TAP to employees would leave Gateway with 45%, but it has the option to buy any shares not purchased by staff. Gateway will be responsible for the day-to-day management of the company, but the state will have the power to veto decisions considered strategically important and name the chairman of the board. Executive board members will be appointed by Gateway.<br/>