Lufthansa signs deal to take over Austrian AirlinesDecember 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.