30 October 2008

“Austrian worth – 1 cent per share” says Lufthansa

So while echoing history in trying to build a Hapsburg like Alliance, at the last minute Germany’s Lufthansa was the only carrier to put in any number to bid for fellow Star Alliance member Austrian Airlines.

While the Austrian government was expecting a significant number to offset the approx Euro 500 million required to put OS to right, LH’s offer fell a little short. In fact it said it was willing to pay just €360,000 ($454,090) for OIAG's (The Austrian government’s organization) stake, or €0.01 per share.


And to make matters worse LH even stated that the Austrian Government would still have to fork out the 500 million to put things right.

The Austrian government has now put in a further deadline of December 31st. Unclear is to whether they will allow new bidders to the table. Previously interested parties included Turkish Airlines, S7 Sibir, AF/KL and Aeroflot plus a dark horse bid was mooted from BA.

Speaking personally I think it’s worth 1.0001 Euro cent per share. But clearly LH has a lot more on their mind than little old Austrian.


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