Elliott pushes for shake-up at Colombia’s Avianca airline
Elliott Management, the US hedge fund, is leveraging its position as lender to Avianca’s majority shareholder to force the airline into a sale or strategic partnership. The activist fund has become increasingly influential in discussions about Avianca’s future even though it does not hold a stake in the carrier, according to people close to the company. Elliott has held talks with the company’s senior executives in recent weeks and has provided input on what it thinks Avianca should do. Elliott provided loans to Germán Efromovich, the carrier’s controlling shareholder, more than a year ago, say people with knowledge of the financing arrangement. The loans made by Elliott to Efromovich are secured against the value of his 51% stake in the carrier and are linked to its share price — meaning the hedge fund stands to gain if the airline is sold. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2016-09-30/star/elliott-pushes-for-shake-up-at-colombia2019s-avianca-airline
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Elliott pushes for shake-up at Colombia’s Avianca airline
Elliott Management, the US hedge fund, is leveraging its position as lender to Avianca’s majority shareholder to force the airline into a sale or strategic partnership. The activist fund has become increasingly influential in discussions about Avianca’s future even though it does not hold a stake in the carrier, according to people close to the company. Elliott has held talks with the company’s senior executives in recent weeks and has provided input on what it thinks Avianca should do. Elliott provided loans to Germán Efromovich, the carrier’s controlling shareholder, more than a year ago, say people with knowledge of the financing arrangement. The loans made by Elliott to Efromovich are secured against the value of his 51% stake in the carrier and are linked to its share price — meaning the hedge fund stands to gain if the airline is sold. <br/>
