Posted on 03/22/2005 7:43:49 PM PST by COEXERJ145
FRANKFURT/ZURICH (Reuters) - Germany's Deutsche Lufthansa has agreed to take over Swiss International Air Lines in a deal worth up to 310 million euros ($409 million), ending three years of independence for the loss-making Swiss carrier.
The long-rumored agreement on Tuesday marks the start of Europe's biggest airline merger since Air France took over Dutch KLM last year to form the world's largest airline group by revenues.
Under the terms of the agreement, Lufthansa will pay up to 265 million euros to the Swiss carrier's major shareholders — the Swiss government and big companies — and about 45 million euros to individual investors whose shares are in free float.
Both supervisory boards had approved the planned deal, which would be signed by the groups' top executives in Zurich later on Tuesday, they said.
The Swiss government — which holds 20 percent of the Swiss airline — earlier agreed to the takeover. The companies said they now had approval from shareholders representing just under 83 percent of the firm's outstanding capital.
The airline's other major shareholders include the canton (state) of Zurich, banks Credit Suisse and UBS , and car import and dealership group AMAG.
A raft of other Swiss companies have smaller stakes they received in return for chipping in to help get Swiss off the ground in 2002, when it was created from the ashes of collapsed carrier Swissair and regional airline Crossair.
Swiss shares had been suspended on Monday and Tuesday as negotiators put the finishing touches to the planned takeover. Lufthansa shares closed 0.5 percent higher at 11.13 euros.
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FYI
$400 million doesn't buy many new planes. How big a fleet are they acquiring?
Any change of any kind represents improvement for Swiss International.
7 A319's
Looks like they got rid of all their MD-11s.
They ditched all of those when Swiss Air collapsed several years ago. The airline that Lufthansa is taking over was the successor to Swiss Air.
Most of the planes are probably leased.
Too many different types. Maintenance costs must be tough.
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