EU to rule on Lufthansa-AUA deal June 17

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VIENNA, May 8 (AFP): The European Commission will rule on Lufthansa's takeover offer for shares in Austrian Airlines (AUA) on June 17, Austria's APA news agency reported Friday.

"The deadline has been set for June 17," said Jonathan Todd, spokesperson for Neelie Kroes, the Competition Commissioner.

Lufthansa, Germany's largest airline, is seeking to buy at least 75 per cent of the shares in AUA, including a 41.56 per cent stake it is buying from the Austrian government for the symbolic sum of 366,000 euros (US$466,000).

Franco-Dutch carrier Air France-KLM, which had sought to buy AUA, has filed a complaint in Brussels against Lufthansa's purchase, noting that Austria had pledged to assume 500 million euros in AUA debt as part of the deal.

That raised competition issues, the Franco-Dutch airline says.

Other airlines to raise objections include British Airways and low-cost carrier Ryanair.

The EU Commission has previously expressed "doubts" regarding the price paid and the Austrian government's agreement to assume the airline's heavy debt load.





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