Portugal's government has rejected a final offer from Brazilian conglomerate Synergy Group for the purchase of a stake in state-owned TAP Portugal.
The decision was made following a cabinet meeting today, says a brief statement on the Portuguese government's website. Spanish news agency EFE reports that the offer proposed by Synergy did not meet the requirements of the government.
AviancaTaca, which has a majority stake held by Synergy, confirms the rejection of the offer.
EFE, quoting Portugal's secretary of state for the treasury Maria Albuquerque, says Synergy's offer would not have allowed TAP Portugal to refinance itself.
She adds that the government will now study other ways to sell the airline.
Synergy was earlier approved by the Portuguese government to be the sole bidder for a stake in TAP Portugal, and a group of staff from the conglomerate had travelled to Portugal earlier this month to present its final offer.
The Portuguese government had intended to cap the shareholding of potential buyers in the airline to 49.9%. TAP Portugal, a Star Alliance carrier, reported a €112 million ($138 million) net loss in the six months ending 30 June.