March 28 (Bloomberg) -- Latam Airlines Group SA, the airline created by the merger of Chile’s Lan and Brazil’s Tam, sank to a 17-month low after its frequent-flier unit canceled a plan to sell additional shares.
Latam Airlines fell 2.1 percent to 10,189 pesos at 1:57 p.m. in Santiago trading, the lowest price since Oct. 4, 2011.
Multiplus SA, the Sao Paulo-based frequent-flier unit of Santiago-based Latam Airlines, canceled a plan to sell as many as 36.5 million new shares due to unfavorable conditions, according to a regulatory filing today. At today’s price, the sale would have raised about 1.08 billion reais ($535 million).
“They may not have this extra cash they were planning to raise,” Oswaldo Pacheco, an analyst with BCI Corredor de Bolsa, said in a telephone interview from Santiago.
Multiplus rose 4.4 percent in Sao Paulo to 29.61 reais.
To contact the reporter on this story: Danielle Verbrigghe in New York at firstname.lastname@example.org
To contact the editor responsible for this story: David Papadopoulos at email@example.com