China's HNA Group eyes Avianca: Sources

China's HNA Group has expressed interest in acquiring Avianca Holdings SA and Avianca Brasil, the South American airlines controlled by Bolivian-born entrepreneur Germán Efromovich's Synergy Group, people familiar with the matter said. Avianca Holdings and Avianca Brasil are working with investment banks to explore options. They have also attracted interest from US peers United Continental and Delta, the sources said Friday. The growing foreign interest in Avianca shows that even as Latin America's largest economy reels from its worst recession since the 1930s, airlines see the broader region as a growth area and one their route networks must embrace. Depressed asset values there make this a tempting moment for acquisitions. "The market is down," said Joel Chusid, US executive director for China's Hainan Airlines Co Ltd, speaking as an aviation industry veteran without any knowledge of parent company HNA's interest in the transaction. "That's the time to buy." If HNA makes the deal, it would be the second major Latin American investment for the aviation, tourism and logistics conglomerate, which has also snapped up air cargo handlers Swissport and Irish aircraft leasing company Avolon. In a filing later on Friday, Avianca denied that it is negotiating with companies and said it has signed no agreements.<br/>