UPDATE: Lufthansa Granted More Time To Close Austrian Deal
July 31 2009 - 5:50AM
Dow Jones News
The Austrian Takeover Commission Friday said has granted a
one-month extension of German airline Deutsche Lufthansa AG's
(LHA.XE) public takeover offer Austrian Airlines AG (AUA.VI),
saving the deal from a collapse.
The offer, which was due to expire Friday, has now been extended
to Aug. 31, the takeover commission said in a statement.
The extension was needed to buy more time for Lufthansa and the
European Commission to reach a compromise over competition concerns
that would pave the way for antitrust clearance - a prerequisite
for the offer.
Austrian Airlines' remaining undecided shareholders gained more
time with the commission's decision Friday. Under the revised
offer, the deadline for voluntary acceptance of the EUR4.49 a share
public bid has been pushed back eight business days, from the
initial deadline of Aug. 14, the takeover commission said.
The takeover commission's decision was viewed largely as a
formality, and the share price of Austrian Airlines Friday was
unchanged. At 0848 GMT, the stock traded flat at EUR4.38 while the
Vienna ATX 20 index traded up 0.1%.
Lufthansa had applied for the extension July 28 as it became
clear that the July 31 offer deadline for antitrust approval could
not be met. It said at the time an agreement with the European
Commission over antitrust approval "is emerging," but also that
clearance for the takeover as well as for EUR500 million in
government aid for Austrian Airlines couldn't happen in the
existing time frame.
The Austrian Takeover Commission said its decision to grant an
extension was made in the interest of Austrian Airlines'
shareholders.
State-controlled Austrian Airlines is being sold after declining
passenger volumes and steep fuel costs sent it deep into the red
and a standalone solution was deemed unviable by both its owners
and management.
In a head-to-head final bidding round, Lufthansa won the tender
for the state's controlling 41.6% stake ahead of French-Dutch
airline Air France-KLM (AF.FR).
Should the takeover fail, it would cost the Austrian state more
than EUR1 billion to restructure, reshape and relaunch a smaller
and viable Austrian Airlines, the company's supervisory board
chairman said recently.
Company Web sites: www.takeover.at; www.austrianairlines.co.at;
www.lufthansa.com
-By Flemming E. Hansen, Dow Jones Newswires; +43 1 513 69 22 10;
flemming.hansen@dowjones.com