TAM and LAN shares hit as court puts brakes on merger2 February 2011
Chile’s antitrust court, TDLC, has ordered a suspension of the merger process between LAN and TAM while it conducts an investigation of the competitive impact of the merger. The court ordered the suspension while it hears a petition filed by the National Consumers Corp, a consumer rights organisation.
The organisation, known as Conadecus, argues certain routes between Santiago and SÃ£o Paulo and Rio de Janeiro will be operated under monopoly control if the merger goes through. Shares in TAM were down 6.1% in trading on Monday, while shares in LAN declined 1%.