Update Gol (GOL)
12/07/2011 2:48 pm EST
Gol’s U.S.-traded ADRs (American Depositary Receipts) were up 4.9% as of 2:20 p.m. New York time on the news. (Gol is a member of my Jubak Picks 50 long-term portfolio http://jubakpicks.com// )
The agreement, which gives Delta 3% of Gol, will also give Delta a seat on the Brazilian airline’s board of directors. (Delta has agreed not to sell the stake for at least 12 months and not to buy additional shares without Gol’s permission.) The two airlines will shares booking codes on flights so that they can take reservations for travel on either airline. They will also honor each other’s frequent flier programs.
This is Delta’s second investment in a foreign airline this year. In August Delta paid $65 million for a piece of Grupo Aero Mexico.
Full disclosure: I don’t own shares of any of the companies mentioned in this post in my personal portfolio. The mutual fund I manage, Jubak Global Equity Fund http://jubakfund.com/ , may or may not now own positions in any stock mentioned in this post. The fund did own shares in Gol and Lan as of the end of September. For a full list of the stocks in the fund as of the end of September see the fund’s portfolio at http://jubakfund.com/about-the-fund/holdings/
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