Berlin, June 30: Deutsche Lufthansa AG has offered between 200 and 300 million Swiss Francs ($147.8 million) for a third of beleaguered Swiss International Air Lines Ltd, according to a report. But the management of Swiss has reservations about such a plan, the paper said. While Lufthansa brushed it off as speculation, a Swiss spokesman said, "We're having lots of talks with lots of airlines, that's all we can say." But the airlines shares rose on Monday as investors felt the possible tie-up could secure the struggling carrier's survival.
Its shares were up 8.25 per cent at 8 Swiss francs at 0910 GMT in a flat Swiss market. Citing insider sources, the paper said Lufthansa had offered to buy a third of Swiss's share capital, with an option for a majority stake.
Remarks from Swiss chief executive Andre Dose, in an interview with Mittelland Zeitung, added fuel to the merger speculation. "I am convinced that consolidation (in the airline sector) will come and we will have to link up with a partner," he said. Dose added: "Lufthansa is a possible partner, yes." A year after the collapse of its predecessor Swissair, the loss-making Swiss carrier is pushing a new business plan that includes grounding 34 planes. Bureau Report