Lufthansa signs deal to take over Austrian Airlines

December 6th, 2008 - 12:42 am ICT by IANS  

Vienna, Dec 5 (DPA) Germany’s Lufthansa AG Friday signed a deal in Vienna to buy 41.65 percent of Austrian Airlines from Austria’s state holding OeIAG, creating Europe’s biggest airline.The debt-ridden flag carrier will be sold for the token price of 366,000 euros ($465,000), OeIAG confirmed in a statement.

On Wednesday, the German carrier announced that it planned to take over 100 percent of its smaller Austrian rival, first through the privatisation, and then through buying free-floating shares.

The total price is expected to amount to 377 million euros.

One condition for the sale is that the EU (European Union) approve a 500-million-euro cash injection for restructuring from the Austrian government.

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