Lufthansa may take over Swiss International Airlines

[Minos]

xx

[sn26567]

Weeks ago the same story appeared for the first time. And then, week after week, it comes to the surface again from time to time (see Luchtzak's latest news and forum). And nobody at Swiss or Lufthansa wants to confirm or deny the story.

The only sure thing is that Swiss and Lufthansa are discussing. About what? Nobody knows: takeover, closer co-operation, frequent flyer programmes, God knows!

I will believe in a takeover when I see a press release from Lufthansa!

[Minos]

This is a very nice opportunity for Lufthansa, because they can expand their marketshare in a consolidating aviation sector. They can also realise a lot of scale advantages.

On this moment the marketcapitalisation (outstanding shares x share-price) of Swiss International Airlines is very attractive for Lufthansa!

Greetings,

Minos

[sn26567]

The monster of Loch ness appears again: will LH take over LX?

Today, beco announces in the latest news that

"The Business", a UK weekly magazine, reports that Germany's Lufthansa and Swiss International Air Lines are set to strike a deal that will keep Switzerland's struggling national carrier in the air. Lufthansa is ready to pay 133 to 200 million EUR for a 33% to 49% stake in the airline. Next Friday, Board members of Swiss Airlines will meet to discuss Lufthansa's offer.

The Business published its information on a Sunday, when you don't find many people to confirm or deny it. Immediately thereafter, you can read that

Lufthansa äußert sich nicht zu Berichten über Swiss-Beteiligung - Montag 4. August 2003, 10:25 Uhr - Frankfurt - Die Deutsche Lufthansa AG, Frankfurt, will sich zu Berichten über eine Beteilung an der Swiss International Air Lines, Basel, nicht äußern. Spekulationen kommentiere die Lufthansa nicht, sagte ein Konzernsprecher am Montag. Das britische Wochenblatt "The Business" hatte am Sonntag berichtet, dass das Unternehmen bis zu 300 Mio CHF für eine Minderheitsbeteiligung an der Swiss zahlen wolle. Lufthansa hat demnach 200 Mio bis 300 Mio CHF für einen Anteil von 30 bis 49,9 Prozent geboten.

In short, Lufthansa does not want to comment rumours or speculation.

Again, when I see an official announcement I will believe. Not before.

And the monster of Loch Ness can raise again, I will not budge one inch!

[Minos]

Don't forget that the Swiss Market is very important for Lufthansa. This would be a great deal!

Minos

[sn26567]

Minos,

I agree with you. LH would love to take over LX at the lowest possible price. It would make a very nice combination. But:

1) the European competition authorities would not allow it without restrictions;
2) the Swiss government, which owns 20% of LX, will not let its crown jewels go without getting some guaranttes; it will fight to keep influence;
3) Swiss itself is still looking for credit lines; in the absence of goodwill from Swiss banks, it has now secured a credit line of CHF 600 millions with Barclays.

So, there could still be a lot of water flowing under the bridges before LH's dreams become reality...