Deutsche Lufthansa AG is close to making an offer for Italy’s ITA Airways under a deal that would likely see the German airline eventually take full ownership of the successor to Alitalia, according to people familiar with the matter.
(Bloomberg) — Deutsche Lufthansa AG is close to making an offer for Italy’s ITA Airways under a deal that would likely see the German airline eventually take full ownership of the successor to Alitalia, according to people familiar with the matter.
After extensive stop-start talks over ITA’s fate, Lufthansa is set to finally make a preliminary bid for ITA on Wednesday, said the people, asking not to be identified discussing private deliberations. The German carrier is poised to take an initial 40% stake in ITA, with an option to eventually increase its shareholding to 100%, the people said.
A spokesman for Lufthansa declined to comment, while representatives for Italy’s government did not immediately respond to a request for comment. Raising the stake to full ownership over time is a possibility, though the final contours of the deal could still change as the parties continue to negotiate, one of the people said.
Lufthansa has been linked with ITA and its predecessor Alitalia for years. An acquisition of Italy’s former national flag carrier would allow the German group to expand its lucrative transatlantic business, with Italy one of the most popular entry points to Europe for travelers from the U.S.
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