Portugal's government has asked Air France-KLM and Lufthansa to submit improved proposals to secure a 44.9% minority stake in flag carrier TAP, initiating a final negotiation phase after finding the two initial binding offers too close to separate a preferred bidder.
Cabinet Minister Antonio Leitao Amaro told reporters that both airline groups presented binding bids in July to acquire the 44.9% stake and act as TAP's strategic partner. The government received an assessment of those offers from state holding company Parpublica on Tuesday, and concluded that, while the offers differed in content, they were broadly similar overall.
Given that assessment, the government opted to open a further round of talks. The minister said this final stage of negotiations will run for a few weeks, during which officials expect the two contenders to enhance their proposals. He made the remarks after a cabinet meeting and at a subsequent news briefing.
The renewed privatization push was relaunched in July 2025, with the government seeking an investor capable of strengthening TAP's international footprint and competitive position. The sale structure reserves an additional 5% stake for employees, and the selected strategic partner will have the option to acquire any employee shares that go unclaimed.
The government’s decision to request improved bids follows a formal review by Parpublica, which evaluated the July binding offers from both groups. Authorities characterized the offers as materially different in specific elements but sufficiently similar in overall assessment to require further competition between the two bidders.
Officials framed the final negotiation window as a limited period intended to sharpen the proposals and produce a clear winner. Beyond the timeline and the employee-share arrangement, the government has not expanded on selection criteria or other potential contractual terms during the public remarks.
Process timeline: Binding offers were submitted in July; Parpublica provided its assessment on Tuesday; the government has launched a final negotiations phase lasting a few weeks.
Stake structure: 44.9% available to the strategic investor, plus 5% set aside for employees, with the winning bidder able to buy any unclaimed employee shares.