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Lufthansa's Swiss Airline Acquisition Approved
Best Web Hosting Tuesday, the German airline Lufthansa signed an agreement to takeover Swiss International Airlines.If you would like to receive late breaking business news covered by AXcess News then you need to subscribe. Membership is free.
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Web Hosting Companies March 22, 2005 (AXcess News) Zurich - Tuesday, the German airline Lufthansa signed an agreement to takeover Swiss International Airlines, which was approved by the boards and shareholders of both companies.Swiss Airline's board approved the takeover due to its struggling financial situation. Lufthansa will pay Swiss Airlines US$406 million ($310 million euros). Major banks and other large shareholders also approved of the acquisition.
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Web Site Design And Hosting The management of both airlines assured the Swiss that they were not losing their airline, that it would remain the country's flag-ship carrier.
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Email Web Hosting At a joint news conference at the nearby Zurich Airport Lufthansa CEO Wolfgang Mayrhuber said, "Swiss remains Swiss, also with Lufthansa."
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Web Hosting Plans Nearly 83 percent of Swiss Air's shareholders approved the deal.
Web And Email Hosting But even though both companies have given a green light to closing the deal, Lufthansa still has to clear regulatorary hurdles over antitrust issues, which would raise its stake to 49 percent and after aviation regulatory approval, to 100 percent. Jacques Barrot, the European Union transport commissioner, was quoted as saying that he was accepting the terms of the airline's takeover though the EU competition authorities had the final say.
Web Hosting Compare Lufthansa said it offered the larger shareholders what it called an 'earn-out option', agreeing to pay them US$347 million and that it would spend another US$59 million to buy out the free trading float.AXcess News will be reporting on any new market trends related to this story. Members should watch their in-box for late breaking business news. If you're not a member, consider joining now.
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