Austrian Airlines slumps as “miracle” required for EC approval of Lufthansa’s takeover proposal
Austrian Airlines’ shares slumped 13.1% on Friday, after the European Commission (EC) rejected Lufthansa’s new informal proposal of antitrust remedies, regarding its proposed takeover of the carrier. The EC stated that the revised remedies were “worse than what was offered before” and that Lufthansa has “taken one step forward and two steps backward” in its offer.
The EC also indicated that unless Lufthansa improves its offer, a decision would not be made until early Nov-2009. Lufthansa’s offer to Austrian Airlines is only valid until 31-Jul-09. Lufthansa’s shares dipped 1.7% on Friday.
Iberia shares gained 0.2% on Friday, as new Chairman & CEO, Antonio Vazquez Romero, announced the carrier is eager to conclude merger talks with British Airways (BA). Mr Romero told Cinco Dias, “I’ve come here with the object of closing a deal with our British partners. Negotiations cannot drag on much longer, but this isn’t to say that we are in a rush to seal a deal at any price. I want to make clear that any eventual deal that we sign with British Airways has to bring a plus and not a minus for Iberia”.
BA shares gained 0.1% on Friday, as the carrier secured support for a proposed emergency rights issues. As strikes looms, making the rights issue increasingly likely.
Europe selected airlines daily share price movements (% change): 10-Jul-09
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