Filipino businessman Lucio Tan is offering to invest $200 million in Philippine Airlines PAL on condition the government restricts foreign carriers' access to the Philippines. This is a pretty new tune Tan is playing. Only six weeks ago, finance minister Jose Pardo said Tan had dropped the asking price for his entire PAL interest to $200 million from $800 million, plus the airline's $2.3 billion debt.
So is he planning to invest or divest It seems divestment is still the preferred option and in order to fetch a worthwhile price Tan is trying to secure some sweeteners for PAL. However, the protectionist measures he is after come at a cost...
