IAG International Airlines Group may abandon its pursuit of a stake in TAP Air Portugal (TP, Lisbon), having concluded that Portugal's plan to sell only a minority holding does not fit with its group strategy, Bloomberg reported, citing "people familiar with the matter".

No final decision has been made, and the company’s thinking might change, the unnamed sources said. IAG may also make a non-binding offer by the April 2 deadline but then not pursue an actual deal, they added.

ch-aviation contacted IAG for comment.

A company spokesman told Bloomberg that IAG has until April 2 to submit an offer under the existing process. Portuguese government representatives declined to comment to the news agency.

Portugal in December invited IAG, Air France-KLM, and Lufthansa Group to submit non-binding offers after the three European airline groups expressed interest.

Portugal plans to sell up to 49.9% of TAP, including 5% reserved for employees, while imposing conditions deemed strategic such as maintaining the airline’s hub at Lisbon and protecting routes.

IAG’s withdrawal would narrow the field in a closely watched sale of an airline valued for its routes to Brazil, Africa, and North America.