UPDATE 1-TAM shares surge for 2nd day on LAN merger savings

* TAM stock jumps a 2nd session on LAN merger plans

* LAN-TAM see $400 mln in annual savings from merger

* LAN shares also gain in Santiago
(Adds details of transaction, LAN shares)

SAO PAULO, Aug 16 (BestGrowthStock) – Shares of Brazil’s largest
airline, TAM Linhas Aereas (TAMM4.SA: ), jumped as much as 11
percent in early trading on Monday, extending a surge from the
previous session, when the carrier unveiled plans to merge with
Chilean rival LAN.

The stock rose to 38.97 reais and traded as high as 40.2
reais, on top of a 27.6 percent jump Friday. Shares of LAN
(LAN.SN: ) were up 3.2 percent in Santiago to 14,350 pesos, after
gaining 7.7 percent on Friday. [ID:nN16257244]. At one point
early Monday, LAN shares were up as much as 14 percent.

LAN and TAM said on Friday they would combine in an
all-stock transaction worth about $2.7 billion, creating a
Latin American giant to better compete in a consolidating
global airline industry. [ID:nN13221392]

The companies expect $400 million in annual savings with
the combination.

As part of the agreement, TAM shareholders would receive
0.9 share of LAN (LFL.N: ) for every TAM share in the form of
Brazilian depositary receipts. TAM would then delist its shares
in Sao Paulo and in New York.
(Reporting by Elzio Barreto, editing by Gerald E. McCormick)

UPDATE 1-TAM shares surge for 2nd day on LAN merger savings