Delta offers to buy additional Aeromexico stake

Delta said Monday it plans to launch a cash tender offer to buy up to an additional 32% of Grupo Aeromexico's stock at 53 Mexican pesos per share, valuing the deal at about $590m. The offer represents a premium of 34.4% to Aeromexico's Friday close. The Mexican airline's shares rose as much as 21.5% to 47.90 Mexican pesos in morning trading. Delta, which already has a 4.2% stake in Aeromexico, had said in November 2015 it intended to buy the additional stake for 43.59 Mexican pesos per share. Aeromexico had about 707.8m shares outstanding as of Jan. 25. The increase in the purchase price was the result of interim exchange rate movements and other factors, Delta said Monday. The Mexican peso has hit a series of record lows since the U.S. election on concerns that President Donald Trump could rip up a free trade deal with Mexico, which sends nearly 80% of its exports to its northern neighbor.<br/>