Avianca Holdings are expected to make a decision on which foreign carrier investment package is best suited to its current and future needs following the submission of three proposals last week.

Quoting sources familiar with the proposed deal, The New York Times reports US-based hedge fund Elliott Management, which is involved in the deal, last week received proposals from Panama's Copa Airlines, United Airlines parent United Continental Holdings Inc, and Delta Air Lines.

Of the offers, the Panamanians are proposing a merger that would value Avianca at more than USD2 billion. On the US carriers' part, United has offered a USD500 million loan to Avianca and potentially one of its investors. Delta has offered more than USD1 billion in cash, the bulk of which would go to buying out most of parent firm Synergy with the rest going to Avianca. The Delta bid implied a USD1.9 billion valuation, the paper said.

Avianca's board sat on Tuesday to consider each of the offers and to decide whether to accept any of the bids or to reissue a tender.

Avianca Holdings has interests in aviation-related firms in Ecuador, Argentina, Colombia, El Salvador, Costa Rica, Honduras, Nicaragua, Peru, Guatemala, and Brazil. As such, gaining access to Avianca would considerably boost the footprint of any of the three contenders, most notably the two US operators which, at present, lack a substantial footprint in the Latin American market.

For its part, Avianca Holdings is seeking a partner to help shore up its balance sheet and support future growth plans.