TAP Portugal and Varig confirmed Monday that they have signed an MOU to hold exclusive talks aimed at a recapitalization of Brazil's failing flag carrier. "TAP may be able to become a shareholder of. . .up to 20% of Varig's capital, which is the maximum permitted by the Brazilian legislation," the Portuguese carrier said in a statement. TAP CEO Fernando Pinto, who served as CEO of Varig prior to joining TAP, stressed that a merger is "out of the question" and that both companies will ...

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