Gol Plans Capital Increase

Brazilian low-cost airline Gol is to increase its share capital by $255 million (518 million reais) to pay for its acquisition of rival domestic carrier Varig. The company will issue of 8.519 million preferred shares at a price of 60.81 reais per share. Last month Gol announced it had agreed to buy the rescued airline in a deal worth $320 million. It said then it would finance the acquisition through cash and shares and would take on Varig’s debentures.