LAN-TAM share swap extended

Washington DC
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The merger between Chile's LAN and Brazil's TAM has been held off until 22 June at the earliest after a share swap by LAN to take over TAM failed to meet certain requirements.

At the conclusion of LAN's offer for TAM shares yesterday, only 94.4% of the outstanding shares in the Brazilian carrier were exchanged, which failed to meet the minimum 95% condition in the exchange offer documents, says the Chilean airline.

LAN and TAM started the share exchange process on 10 May as the first step of completing their merger that was announced in August 2010. The transaction is being executed through an intermediate company, Holdco II, which will be merged into LAN. Holders of TAM shares will receive 0.9 LAN shares for each TAM share.

The offer has been extended for another 10 calendar days and will now expire on 21 June at 17:00 eastern time, which will be followed by the auction of shares on 22 June.