Portugal reaches initial deal with TAP's private shareholders

Portugal's government said on Thursday it had reached an initial deal with the private shareholders of ailing flag carrier TAP that would keep it afloat, but warned it would nationalize the airline if commitments are not met.

"There is at present an agreement in principle with the private sector to make the intervention in TAP feasible," said cabinet affairs minister, Mariana Vieira da Silva. "If this commitment is broken, the cabinet will meet to approve a decree to nationalize TAP."

The government said it expects the final agreement to be sealed in the coming hours.