Business News
Lufthansa signs deal to take over Austrian Airlines
Dec 5, 2008, 14:37 GMT
Vienna - Lufthansa AG on Friday signed a deal in Vienna to buy 41.65 per cent 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 dollars), OeIAG confirmed in a statement.
On Wednesday, the German carrier announced that it planned to take over 100 per cent of its smaller Austrian rival, first through the privatization, 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 approve a 500-million- euro cash injection for restructuring from the Austrian government.
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