Open

Coming up

Don't miss

Replay


LATEST SHOWS

MEDIAWATCH

No strategy and a beige suit

Read more

THE WORLD THIS WEEK

The World This Week - 29 August 2014 (part 2)

Read more

THE WORLD THIS WEEK

The World This Week - 29 August 2014

Read more

ENCORE!

Alain Choquette: A Hilarious Magician in Paris

Read more

FOCUS

France welcomes Iraqi Christian refugees

Read more

FRANCE IN FOCUS

Emmanuel Macron: A new economy minister with a pro-business agenda

Read more

THE OBSERVERS

More of this year's best Observers stories

Read more

#TECH 24

Changing the world, one video game at a time

Read more

IN THE PAPERS

Socialist Party summer conference kicks off in explosive atmosphere

Read more

  • Besieged UN peacekeepers battle Islamists in Golan Heights

    Read more

  • Kerry calls for 'coalition of nations' to battle IS militants

    Read more

  • EU leaders meet in Brussels to seek a response to Russia

    Read more

  • Lesotho PM Thabane 'flees after 'military coup'

    Read more

  • Ukrainian plane with seven on board crashes in Algeria

    Read more

  • Exclusive: Fabius warns Russia of more sanctions

    Read more

  • IMF backs Lagarde amid French corruption probe

    Read more

  • Ebola drug ‘ZMapp’ heals all monkeys in study

    Read more

  • British killer escapes from French psychiatric hospital

    Read more

  • Police hunt for British boy with brain tumour taken to France

    Read more

  • Ukraine to relaunch NATO membership bid

    Read more

  • Suriname leader’s son pleads guilty to courting Hezbollah

    Read more

  • Mapping Ukraine: Canada and Russia in ‘tweet for tat’ row

    Read more

  • France shines in IMF list of world’s promising economists

    Read more

  • Chelsea’s Torres set for AC Milan switch

    Read more

  • First case of Ebola confirmed in Senegal

    Read more

  • Obama has 'no strategy yet' against IS militants in Syria

    Read more

  • Netflix to woo French with ‘House of Cards’ set in Marseille

    Read more

  • French businesses ‘hoping for a new Thatcher’

    Read more

  • The deleted tweets of Manuel Valls

    Read more

  • Libyan PM resigns as Islamists set up rival administration

    Read more

Lufthansa to buy Austrian Airlines

Text by AFP

Latest update : 2008-11-13

Europe's top airline, Lufthansa, is to buy rival Austrian Airlines after a long battle with Air France-KLM and a Russian air carrier, according to the main shareholder of the Austrian company.

Austrian Airlines will be sold to German carrier Lufthansa, the Austrian state holding company OeIAG, which has a 41.6-percent stake in the loss-making airline, announced Thursday evening.
  
"As of now, OeIAG will only hold concluding talks with Lufthansa," it said in a statement after a meeting of its privatisation committee.
  
Rival bidders "(Russia's) S7 and Air France-KLM are no longer in the bidding process," it added.
  
OeIAG explained that S7 had failed to submit documents that were in conformity with the EU bidding rules, while Air France-KLM had not made an offer within the allotted time.
  
The two companies have been informed of the holding's decision, it added.
  
OeIAG director Peter Michaelis said the sale price and details in the deal with Lufthansa would still be finalised in the coming weeks, but added that he expected an agreement within a month, which would allow the holding company's directors to examine the decision at their next meeting on December 5.
  
Among the issues to discuss are Lufthansa's reported demands that the government take over 500 million euros (638 million dollars) of AUA's debt of more than a billion euros.
  
Lufthansa is offering only a nominal price for OeIAG's 41.6-percent stake -- just 0.01 euro per share or 360,000 euros (445,200 dollars) in all, according to media reports.
  
On Thursday evening, Lufthansa refused to comment on OeIAG's decision.
  
At Thursday's close, AUA shares were down 0.38 percent to 2.63 euros on the Vienna stock exchange.

Date created : 2008-11-13

COMMENT(S)