Lufthansa Close To Buying Over 40% Of Italy's ITA Airways, Source Says | Old North State Wealth News
Connect with us

US News

Lufthansa close to buying over 40% of Italy’s ITA Airways, source says



© Reuters. CEO of Lufthansa AG Carsten Spohr speaks during the annual results news conference of Germany’s flagship airline in Frankfurt, Germany, March 3, 2023. REUTERS/Kai Pfaffenbach

By Angelo Amante

ROME (Reuters) -Lufthansa is close to clinching a deal with the Italian Treasury to buy a 40% stake in state-owned ITA Airways, a source told Reuters on Thursday, aiming to take full control of the airline in 2026.

The German carrier would pay between 320-330 million euros ($352-363 million) to purchase the initial minority stake in the Italian firm, said the source, who is close to ITA.

CEO Carsten Spohr was due to meet Italian Economy Minister Giancarlo Giorgetti in Rome on Thursday to finalise talks, which started in January but were extended beyond an initial deadline of April 24.

Lufthansa declined to comment, while the Italian Treasury did not reply to a request for comment. The source was not authorised to talk to the press, so could not be named.

ITA, the successor of Italy’s loss-making flagship airline Alitalia, took to the air in 2021 as a state-owned company and posted a loss of around 486 million euros last year due to the lingering effects of the pandemic and rising fuel costs.

In a decree approved in December to facilitate the sale of ITA, Prime Minister Giorgia Meloni’s government made clear that another airline must end up controlling the carrier.

($1 = 0.9084 euros)

Read the full article here

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *


Copyright © 2022 ONSWM News. Content posted on the Old North State Wealth News page was developed and produced by a third party news aggregation service. Old North State Wealth Management is not affiliated with the news aggregation service. The information presented is believed to be current. It should not be viewed as personalized investment advice. All expressions of opinion reflect the judgment of the authors on the date the articles were published. The information presented is not an offer to buy or sell, or a solicitation of any offer to buy or sell, any of the securities discussed.