Portugal caretaker government gives final approval to TAP airline sale
LISBON Nov 12 (Reuters) - Portugal's caretaker centre-right government on Thursday gave the final approval for the privatisation of indebted airline TAP to avoid its imminent collapse, despite objections by the Socialist party that is seeking to form a new government.
Treasury Secretary Isabel Castelo Branco said the final agreement for the sale of a 61 percent stake in TAP to a consortium made up of American-Brazilian aviation tycoon David Neeleman and Portuguese bus company owner Humberto Pedrosa allowed to capitalise the company sooner than initially agreed.
"The agreement for the conclusion of the sale allows to hasten the capitalisation operation, with 150 million euros injected immediately, with another 120 million to be paid until June 2016," she said, adding that the capitalisation had to be done urgently due to TAP's degrading finances.
A day after the ousting of the centre-right government, the Socialist Party on Wednesday asked state holding company Parpublica to halt the privatisation of TAP. (Reporting By Sergio Goncalves, writing by Andrei Khalip)
© Thomson Reuters 2016 All rights reserved.