LATAM shares fall nearly 20% in one day as rumors of a buyout intensify

This Friday 26 is the deadline for LATAM to present its reorganization program within the Chapter 11 process to which it is subject. Nevertheless, no matter how hard executives have tried to convey confidence, the market seems to have more doubts than certainties about the company’s fate.

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The clearest example of this, according to our partner site  AEROIN, is the company’s share price on the Santiago stock exchange – the only place where it continues to trade – today (Wednesday 24). LATAM’s ticker-tape showed an 18.5% drop at the close, cutting losses after touching 21% intra-day. This came in reaction to a report from German bank Deutsche Bank, which said that minority shareholders «could be left with nothing» in the company’s reorganization plan. In addition, the bank changed the recommendation to its clients from «hold» to «sell», foreseeing a drop in the value of the shares that will affect 98% of investors.

See also: According to reports, Azul is analyzing the purchase of LATAM Brazil.

Meanwhile, rumors that Azul continues to try to reach an agreement with creditors to make an offer for LATAM have increased in the social networks over the days. It should be recalled that Azul’s founder, David Neeleman, had said earlier this month that he was interested in buying the entire group

However, all these versions are, so far, only rumors. The possibility that Azul could effectively acquire the group depends solely on the reorganization plan not being presented or, if presented, not being approved.

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