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Negotiations between German carrier Lufthansa and the Italian government over the sale of state-owned Italian airline Ita have stalled on pricing issues, according to media reports on Tuesday.
Just before the deal was agreed, the Italian government and the German airline disagreed over whether the price should be reduced, Corriere della Sera and Il Sole 24 Ore newspapers reported, citing informed sources.
Lufthansa, Germany’s flagship airline, reportedly insisted on adjusting the price after Ita lost value over the past six months.
But the Italian Finance Ministry reportedly halted the talks for the time being, refusing to accept a lower sum. A ministry spokeswoman refused to comment on the reports.
A Lufthansa spokesman said that the company was adhering to the contract signed in 2023, which provides for price adjustments under certain conditions.
The plans allow Lufthansa to initially take over 41% of Ita shares for a capital contribution of €325 million ($354 million). Over the next few years, it could then take over Ita completely for more than €800 million.
The European Commission approved the plans albeit with a series of conditions to ensure fair competition in the industry.
Last Monday, Lufthansa and the Italian government were due to submit the conditions required by the commission, which concern take-off and landing rights Lufthansa Group must cede to competitors.
The spokesman said Lufthansa has signed the necessary agreement.
But the Italian ministry refused to sign during the final negotiations after differences of opinion emerged over the price details, according to Corriere della Sera and Il Sole 24 Ore.