Uncertainty continues in Argentina

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Two weeks after the news that Argentinian operator InterBaires was taken over by Deutsche Bank, and airport operators Aeropuertos Argentina 2000 (AA2000) questioned the validity of the duty-free shop operator's concession contract, the three sides are still locked in meetings to clarify the situation

AA2000 was concerned that Deutsche Bank had taken control of InterBaires without consultation and immediately advised the new owners that the extension to the current concession contract was not valid, as the Argentinian government, a 20% shareholder in InterBaires, had not countersigned the contract. As uncertainty reigns over the length of the contract, the retail space actually available and the fees owed to the airport authority, it is clear that AA2000, Interbaires and Deutsche Bank have to make a new agreement. This would send the right signals to suppliers who are increasingly worried about the future of their business in Argentina.

Although Deutsche Bank has said it wishes to stay in the business, industry observers have speculated that it may look for a quick sale to reduce its debt burden in the Mercosur area. Neither side was available for comment.

• Further updates will appear on TRW and in DFNI as the story develops.