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Portugal asks Air France, KLM and Lufthansa to submit binding bids for the tight TAP race
Portugal has asked Air France-KLM and Germany's Lufthansa if they would submit binding bids for a minority stake of the national flag carrier TAP. This follows closely matched initial offers from European airline groups. In July, the Portuguese government revived TAP’s long-delayed Privatisation, with a view to selling a 44.9% share to a strategic partner in order to improve its global network. A further 5% was reserved for TAP employees. Lisbon will send formal invitations to two airlines that were the first to make offers by the end April. They must submit binding bids before the end July. The process should be completed by the beginning of September. Air France-KLM and Lufthansa made non-binding bids earlier this month. They included a "proposed price" for the TAP share, along with a list of industrial and strategic plans, and anticipated synergies. Details were not revealed. Infrastructure Minister Miguel Pinto Luz stated that the two bids are "largely equal and very ambitious" from a strategic, industrial, and financial perspective, and the government is comfortable with TAP’s valuation. With proposals that are so close and meet all dimensions, the financial valuation of TAP could end up playing an important role. "We will wait for binding offers," said Pinto Luz at a press conference. In a press release, Lufthansa stated that it intends to "submit" a "solid and attractive" binding offer citing "strong interest" for TAP. Air France-KLM stated in a press release that it has a "strong and continuing interest in TAP", and added that "it is aiming to make Lisbon its unique Southern European Hub and to integrate TAP in line with the group's "unique consolidation approach, which prioritizes "cooperation within a clearly defined framework". TAP?s main appeal is its lucrative and prime slots that connect its Lisbon hub to Brazil, Portuguese-speaking African nations and the United States. (Reporting and editing by Andrei Khalip, Alexander Smith and Sergio Goncalves)
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Siemens Energy's outlook is boosted by a surge in demand for power equipment
Siemens Energy raised its forecast for 2026 on Thursday after a rise in orders and profits in the second quarter. The company joined peers in benefiting a surge of demand for data centers that require power equipment supplied by Siemens Energy. Siemens Energy cited "positive business developments" and strong market demand to increase its sales forecast from 11-13%. It also increased the profit margin for special items from 9-11% to 10-12%. The surge in demand for grid components and gas turbines, fuelled by energy hungry?data centres has also seen U.S. competitor GE Vernova increase its annual'revenue and profit estimates' on Wednesday. Siemens Energy shares on the Frankfurt Stock Exchange rose 6.6% following the results. They traded at 1640 GMT. Stocks of the group hit a new record high on Thursday. It is now Germany's third most valuable company, after its former parent Siemens and SAP. The market value for the stock was around 158 billion euros ($185billion). This rise is fueled by a strong global demand for power grids and gas turbines, as governments around the world depend on fossil fuels to provide energy 24 hours a day and upgrade their aging networks. Siemens Energy also released its preliminary results for the second quarter ahead of their publication on May 12. Sales increased by 8.9% to 10.3 billion euro ($12.1 billion) and profit before special items rose by 28% to $1.16 billion. Siemens Gamesa, the struggling wind division of Siemens, is closely watched by investors who want to know if it will be able to break even this year. The?quarterly loss was 44 million euros compared to 249 million euro loss for the same period in last year.
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American Airlines rejects United merger, explores deeper Alaska ties
Robert Isom, American Airlines' Chief Executive, rejected the merger with United Airlines on Thursday as being anti-competitive. He also pledged to defend American Airlines' Chicago hub. He spoke in the midst of renewed speculation about industry consolidation after United CEO Scott Kirby brought up the possibility earlier this year that a tie-up between American and the Trump administration, as well as the fact that U.S. Airlines face tighter restrictions at congested hubs. Isom, speaking on the company's earnings call for the first quarter of this year, said that federal action would ease congestion at Chicago O'Hare Airport and allow American to rebuild their schedule to about 500 departures per day. Last week, the U.S. Federal Aviation Administration capped flights for summer at O'Hare after airlines planned?more than the airport could handle and forced carriers to scale back their plans. Isom stated that without these steps, O'Hare would have been on a delay schedule for the'very first flight of a day'. Roommates who are not married Isom stated that American does not intend to back down in Chicago where it competes with United. Isom added that the two carriers will be "roommates" for "a very long time." He called such a tie up anti-competitive, and bad for the customers. He said, "We are going to be roommates and not get married." Isom said that American is open to new opportunities, if they become available. However, there are no plans in place at this time. ALASKA PARTNERSHIP IS FOCUSED American sees room for improvement in partnership. According to two sources familiar with the situation, it was reported that American and Alaska were in early-stage discussions to deepen their relationship. This could include bringing Alaska to 'American's joint transatlantic and transpacific business arrangements. The pilots' union in the United States has warned against this plan, saying it would "vigorously" defend contract protections linked to code-sharing. The union stated on Thursday that "pursuing a plan for more of our flying to be done by another carrier is not a way to make American Airlines a global competitive airline." Isom stated that any expansion would remain within the limits of those labor agreements. American and Alaska have a partnership based on codesharing, loyalty rewards and West Coast connectivity to international routes. They call it a "West Coast International Alliance". Isom said that the United States sees space to strengthen ties with Canada. (Reporting and editing by Howard Goller; Rajesh Kumar Singh)
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Spirit Airlines is in advanced discussions with government on financing, lawyer claims
Spirit Airlines' lawyer confirmed that the bankrupt airline is in advanced talks with the federal government about the terms of a significant financing package to assist the airline's restructuring. Marshall Huebner said that Spirit's outside lawyer, Marshall Huebner told a bankruptcy court in New York, the details of the financing package proposed by the Trump Administration had been?shared with its main creditor groups. The federal government's financing would do much more than just make the reorganization a possibility. Huebner stressed that talks are continuing. "I don't think anyone can predict where this is going." Other outlets reported that the Trump administration is close to a deal with Spirit Airlines, a low-cost airline. The government will provide about $500 million to assist Spirit Airlines in its bankruptcy. The package is likely to be a short-term loan that will keep Spirit Airlines?running? during bankruptcy. It would then become a long-term loan once the airline emerges from bankruptcy. Warrants would give the U.S. The?sources claimed that the government could have a stake up to 90%. Huebner 'declined to reveal the terms of deal under discussion, which highlights one of the 'unintended consequences' of U.S. Israeli policy on Iran: a surge... in jet fuel prices, which has nearly doubled costs and squeezed margins, pushing weaker airlines.... closer to the edge. U.S. president Donald Trump said on CNBC?on Tuesday he preferred to see Spirit acquire, but that government involvement is possible, signaling an interest in intervening. (Reporting and editing by David Shepardson)
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Sources say that the demand for Russian Urals crude oil is increasing, which has led to an increase in freight rates.
According to calculations and source data, tanker freight rates for the shipment of Urals crude oil from Russia's western ports to India firmed up this week due a?recovering?demand, as port loadings slowly re-invigorate after drone attacks. Sources said that freight costs for Urals cargoes transported from the Baltic port of Primorsk to India by Aframax tankers with 100,000 tons are currently at $18 million, compared to $16 million for a one-way trip in mid-April. Transport costs of Urals shipments from the Black Sea port Novorossiisk in India via Suezmax tankers with a capacity of?about 140,000 tons per voyage have firmed up to $20-21 million, compared to?roughly $19million a few weeks ago. Drone attacks by Ukraine could threaten supplies from Russia's west ports, and thus revenues. Early April saw an increase in exports from March, but ports like?Novorossiisk & Ust-Luga still operate below capacity. After a drone strike on Thursday, a fire broke out in a Transneft oil-pumping facility that supplies crude to Russia's biggest?export terminal?in the Baltic Port of Primorsk. Urals shipments are currently handled by shadow fleet tankers that try to avoid Western restrictions. Greek shipowners are still cautious about working with Russia because of sanctions. EU countries did not approve a complete ban on Russian oil maritime services - one the most prominent restrictions in the 20th package Russia sanctions.
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Tinubu, the Nigerian leader, seeks approval from Parliament for a $516 million road loan
Nigerian President Bola Tinubu asked the Nigerian parliament to approve a $516m foreign loan for a?help to finance a?first section?of a national highway. This is a major transportation corridor connecting the country's southwest to its northwest. Tinubu stated in a letter that was read out by the Senate president on Thursday during a plenary meeting, the 'government' was seeking approval from Deutsche Bank for the'syndicated financing facility'. He added the loan was a part of the'medium-term borrowing program' approved by lawmakers. Tinubu wrote in his letter that the loan would be for nine years, with a grace period of up to three. The highway, which is about 1,000 km (600 miles) long, will connect Sokoto, located in the northwest of Nigeria, with the central Niger, Kwara, and coastal towns of Badagry, located in Lagos, the commercial center. Tinubu stated that the highway would improve north-south connections, reduce travel times and haulage expenses, boost trade and food security, as well as bolster national integration. Last year, Nigeria raised $747 million in a syndicated loan led by Deutsche Bank to?fund a 700 km (435 mile) coastal highway. (Reporting and writing by Elisha Gbogbo, Editing by Emelia Matarise Sithole)
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US Senators demand an investigation into FAA Administrator Stock Sale
Three Democratic U.S. Senators have asked a federal watchdog to investigate whether the head of the Federal Aviation Administration broke his ethics agreement by delaying the sale of stock in order to increase 'his 'payout following his departure from Republic Airways as CEO. On Thursday, Senators Maria Cantwell and Tammy Duckworth asked if FAA administrator Bryan Bedford had misled Congress by explaining why he failed to divest fully his significant equity stakes in Republic before October 7, as per?his ethics contract. The senators claimed that "Bedford deliberately held onto his shares until his airline completed a 'lucrative merger which likely increased the value of his stock holdings". They asked the Office of the Inspector General of the Department of Transportation to conduct an investigation. Bedford completed his divestiture by February. The FAA stated that it would directly respond to senators. Bedford held Republic stock worth between $6 million and $30 million at the time of his confirmation. On November 25, 'Republic completed the merger with Mesa Air Group. Senators had earlier asked Bedford to forfeit any profits if it did not sell the stake by a certain date. Senators claim that Bedford could have made more than $25m from the sale. The senators stated that Bedford's profit would have been higher had he sold his shares in a timely manner on the private markets. Bedford, however, refused to disclose the exact amount he paid for the shares and whether he made any money from the delay. Bedford said he would continue to'recuse himself' from any issues that might impact the airline’s finances, as he sold his holdings. Bedford said he was confident he followed the rules earlier when he asked for a?delayed deadline, and he relied on the advice of career ethics officials. Cantwell had earlier released an?letter? from the Office for Government Ethics?dated December 8, which stated that Bedford had not?complied?with his ethics agreement?and had requested an amendment?to extend the divestiture timeline? OGE stated that the request was not up to the standard required for an amendment. Reporting by David Shepardson, Editing by Chizu nomiyama and Louise Heavens
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UK landlord Segro expands data centre drive to ride AI boom
British 'warehouse owner'?Segro has expanded its efforts into data centres. It is lining up new sites in France and Germany as well as in Italy and Poland to take advantage of the global boom in artificial-intelligence spending. David Sleath, in an interview on Thursday, said: "We think that there will be a very strong demand in the future in and around other large cities." We are working to secure planning permissions on some of these sites and power. Segro, which has around 10.9m square metres of space to its name, is betting that the?demand for AI-based data centres will continue to grow despite concerns from industry about power supply constraints. Power Supplies Sleath stated that the group is well-positioned in terms of its ability to provide power for its sites located in London and Slough (west of the capital), where it has upgraded 400 megawatts. Segro signed a contract for a data centre of 30,000 square metres in Slough during the first quarter. The company also won approval from planning authorities for a 56-megawatt data center in West London, worth $1.35 billion. Amazon and other technology companies have been slowed down by long electricity queues in Europe, causing them to delay or cancel their data center expansion plans. Sleath claimed that some developers built speculatively, without pre-let agreement, leaving them vulnerable to planning changes. He said that "we are very clear that we will not do that". Segro would only commit to capital after it had secured a prelease with a hyperscaler. Last year, data centre operators made up about 7% of Segro's clients. Transport & logistics, retail, and food manufacturing make up the majority of their clientele.
NET4GAS says it wins arbitration case versus Gazprom Export payments
Czech gas transmission system operator NET4GAS has won an arbitration case against Russian group Gazprom Export over payments it was owed, the Czech business said.
In a filing late on Thursday, NET4GAS said a tribunal had bought (Gazprom Export) to pay the claimed amount together with default interest and reimburse N4G for the costs of the proceedings.
Gazprom and Gazprom Export did not immediately respond to a. request for remark.
NET4GAS has said it was declaring 113 million euros from. Gazprom Export after the Russian carrier stopped working to make payments. under contracts following the halt in products to Europe by means of the. Nord Stream pipeline in 2022.
A spokesperson decreased on Friday to provide any even more. details on the claim. NET4GAS has stated that payments form. Gazprom contributed 3 quarters of its income before. Russia's full invasion of Ukraine in 2022.
Gazprom in the meantime won a claim of equivalent size in a. Russian court against NET4GAS, which NET4GAS said remained in blatant. breach of international law.
Gazprom was a significant shipper through the NET4GAS network,. which carried gas from northern border with Germany to southern. Germany through the Czech Republic along with to Slovakia.
The stop in shipments through the Nord Stream pipeline in 2022. and rearrangement of gas flows in Europe have triggered the company. to lose a considerable part if its company, and at present. mostly serves only for imports for domestic needs.
The Czech federal government obtained the company consisting of. arrearage of around 33 billion crowns
(source: Reuters)