Portugal GetsThree Offers for National Carrier TAP Air

LISBON--The Portuguese government has received three offers for national carrier TAP Air Portugal, including from the founder of Brazil's third-biggest airline, Azul Linhas Aereas Brasileiras SA.

With the offers in hand, the government hopes it will finally be able to privatize the loss-making airline it says is in dire need for a capital injection. Portugal tried to sell TAP in 2012, but it shelved the plan after the only prospective buyer--Latin American tycoon German Efromovich, owner of AviancaTaca Holding SA--didn't meet financial conditions set for a deal.

The Portuguese government is now offering up to 66% of the company--61% to investors and the rest to its employees.

Secretary of Transport Sergio Monteiro, who refused to give the name of the bidders or details of the offers, said the government will now evaluate them.

In 2012, Mr. Efromovich, through Aviaca's controlling company Synergy Group Corp., offered EUR35 million ($40 million) for 95% of the airline, plus a capital injection of EUR316 million and the assumption of about EUR1.1 billion in debt held by TAP.

Brazilian-American businessman David Neeleman, the founder of Brazil's Azul as well as the U.S.'s JetBlue, told The Wall Street Journal in an interview that he bid on TAP. If he buys the carrier, it will be kept separate from Azul for legal reasons. His offer was made through a personal business holding called DGN, which has backing from some of Azul's investors and investment funds.

Write to Patricia Kowsmann at [e-mail] and Luciana Magalhaes at [e-mail]

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