Details emerge of InterBaires deal

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Further details are emerging of the deal in which London Supply has invested in Argentina's leading airport operator InterBaires

Deutsche Bank, which took over InterBaires late last year from the Exxel Group, remains the majority shareholder in the duty-free retailer, but it has sold a portion of the equity to London Supply. In addition, London Supply president Teddy Taratuty becomes president of InterBaires.

But both companies will continue to operate independently and existing management will stay in place. Enrique Urioste remains ceo of InterBaires.

"This is not a merger, it is a strategic investment," said London Supply executive director Francisco Heredia. "Under the agreement, management, operations and buying will remain separate. We will of course look at possible synergies and projects where we could work together in the future, but there are no immediate plans. We only closed the deal on Friday night."

InterBaires ceo Enrique Urioste told DFNO: "The owners of London Supply are men of action so they will try to create synergies and examine new opportunities for the business."

Both groups are hoping that London Supply's involvement will contribute to a solution in InterBaires dispute over its contract with Aeropuertos Argentina 2000 (AA2000).

Heredia said: "As an Argentinian airport operator we can identify with AA2000's position. We hope that with our experience we can add some new viewpoints and insights into this dispute and help negotiate a solution."
Heredia stressed that London Supply's investment in InterBaires does not depend on the outcome of the court cases over the operator's contract. "The investment in InterBaires is based on the situation today, and in the worst-case scenario that the contract is not extended beyond 2010 after this dispute, we will still be involved."

Last week AA2000 and a local partner reopened a shop selling local merchandise at Buenos Aires Ezeiza airport, but Customs authorities have halted its plans to extend its presence.