Lufthansa says interested in Austrian Airlines stake

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http://www.forbes.com/afxnewslimited/feeds/afx/2008/08/25/afx5353000.html

Lufthansa says interested in Austrian Airlines stake
08.25.08, 2:59 AM ET

FRANKFURT (Thomson Financial) - Deutsche Lufthansa AG. said it is interested in a stake in ailing Austrian Airlines (AUA), a spokeswoman told Thomson Financial News partner dpa-AFX.

AUA is currently searching for a strategic partner, and the country's state holding company OeIAG, which holds a 43 percent stake in the airline operator, has invited potential bidders for Austrian to notify their interest by Aug. 24.

Austrian's board has screened possible buyers and sources close to the board said a majority favours Germany's Lufthansa The board sees Air France-KLM (nyse: AKH - news - people ), Aeroflot and Turkish Airlines as second choices.

After Aug. 24, potential buyers will receive more information about the purchase process and can submit formal offers until Sept. 12, reported Austrian news agency APA.

The Austrian government has given approval for a sale of the airline, provided the government retain a 25 percent blocking minority, the company's headquarters remain in Austria and the airline keep its name.

Austrian Airlines' management has estimated that the company will post a 70 million euro loss this year.

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