NEWSPAPER REPORT
Lufthansa and Etihad in ‘tie-up meetings’
The companies are examining the possibility of Etihad buying a 30%-40% stake in Lufthansa, according to reports
Milan/Berlin/Dubai — Germany’s Lufthansa and Etihad Airways are in talks to possibly merge the two airlines, Italian newspaper Il Messaggero said in an unsourced report on Tuesday, boosting the German airline’s share price. According to the paper, managers from the companies have been examining the possibility of Etihad buying a 30%-40% stake in Lufthansa through a sale of new shares to the Abu Dhabi state-owned airline. In a second step, the two airlines would look at a full-blown merger, the paper said. Any combination would affect loss-making Italian airline Alitalia, which is 49%-owned by Etihad and is in the midst of a restructuring expected to include job cuts and the grounding of aircraft. Lufthansa and Etihad declined to comment on what they described as "speculation". Lufthansa shares were up 6% on Tuesday. In December, Lufthansa and Etihad signed a flight code-sharing deal after Lufthansa agreed to lease 38 crewed aircraft from Air Berlin, which is part-owned by Etihad. An...
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