Lufthansa has secured a deal to take a 41% minority stake in Italian carrier ITA Airways for €325mn. Lufthansa CEO Carsten Spohr said, “Today’s agreement will lead to a win-win situation for Italy, ITA Airways and Lufthansa Group… will invigorate competition in the Italian market”. Lufthansa existing liquidity will finance the deal and the Italian treasury will contribute a further €250mn to ITA Airways. The transaction is subject to regulatory approvals.
Lufthansa’s bonds were trading stable with its 3.5% 2029s at 90.7, yielding 5.33%
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