LAN-TAM Nears Final Step

Chile’s LAN has launched a public share exchange offer for Brazilian TAM’s shares, it says, in a final step to conclude the merger between the two airlines. LAN, which first agreed to merge with TAM in 2010, is offering to exchange each TAM share for 0.9 of LAN’s Brazilian Depositary Receipts (BDR). Each BDR is equivalent to one LAN common share. The offer will be done through an auction process scheduled for June 12. After the conclusion, TAM’s shares will be delisted. TAM ordinary shares closed Thursday at BRL46.29 ($23.67) and preferred shares at BRL45.95, and LAN at CLP13,248 ($27.74).