November 21, 2024
Lufthansa Nears Deal to Take Over Italy’s ITA Airways – BNN Bloomberg #ItalyFinance

Lufthansa Nears Deal to Take Over Italy’s ITA Airways – BNN Bloomberg #ItalyFinance

CashNews.co

(Bloomberg) — Deutsche Lufthansa AG has worked out differences with the Italian government over the price of ITA Airways and is on track to finalize its deal to take over the money-losing airline as soon as Monday, according to people familiar with the matter.

The agreement hit a surprise snag last week when German airline asked for a discount on the €325 million ($346 million) price tag for a 41% stake in ITA because its value had fallen since the original 2023 accord.

The Italian government resisted, pitching the transaction into uncertainty in its final stretch. The talks were near completion Monday evening with the biggest points of contention resolved, said the people, who declined to provide details. They asked not to be named discussing ongoing negotiations.

Representatives for Lufthansa, Italy’s Finance Minister and ITA Airways weren’t immediately available for a comment.

Selling ITA would allow Prime Minister Giorgia Meloni to offload responsibility for an airline whose predecessor, Alitalia, has been a drain on state resources for decades.

©2024 Bloomberg L.P.

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