May 26 (Reuters) – German airline group Lufthansa (LHAG.DE) on Friday said its goal was to take over Italian carrier ITA Airways in full, but it could not be forced to do so, after it announced it was taking on a minority stake on Thursday.
Lufthansa will take a 41% stake in ITA Airways by way of a 325 million euro ($358 million) capital increase that will flow directly to the Italian carrier, the German group said on Thursday.
That ownership stake could be extended based on how well the airline performs in the coming year, Lufthansa CEO Carsten Spohr said.
[1/2] A Lufthansa’s aircraft is seen on the tarmac the day before VERDI union called airport workers at Frankfurt, Munich, Stuttgart, Hamburg, Dortmund, Hanover and Bremen airports to go on a 24-hour strike on Friday, at the Munich International Airport, Germany, February 16, 2023. REUTERS/Leonhard Simon
“There are Lufthansa call options for 49% (ownership) in a time frame that begins in 2025. For me, that would be the two years we have planned for the turnaround of the company,” Spohr told an analyst call on Friday.
He said there are further options for acquiring the remaining 10% but that it “depends on the economic development of ITA.”
He added that the German group had to be sure they didn’t overpay for the financially troubled Italian airline.
Reporting by Joanna Plucinska and Klaus Lauer; Editing by Hugh Lawson
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