Avianca-United Airlines deal challenged in US court
Avianca Holdings chairman and controlling shareholder, German Efromovich, is forcing the Colombian airline into a potential deal with United Continental Holdings. That will hurt minority investors, according to a lawsuit filed Tuesday in New York State Supreme Court.
Kingsland Holdings, the second-biggest shareholder in Avianca, is suing the Bogota-based air carrier, Efromovich and Chicago-based United, saying they secretly negotiated an $800 million loan and strategic partnership. Efromovich chose the United deal for his personal benefit and over offers from two other major international airlines that assigned a higher value to Avianca, Kingsland said.