Lufthansa and Swiss quiet on takeover reports
A Zurich press report attributed to an unnamed “well-informed source” that LH is on the verge of presenting a formal takeover proposal for financially instable Swiss.
Sunday newspaper NZZ am Sonntag claimed the Lufthansa offer depended on the Swiss company managing to secure Sfr500m ($352m from its shareholders. The biggest owners of Swiss are the Swiss federal government (20.4%), UBS (10.4%), Canton Zurich (10.2%) and Credit Suisse Group (10%).
According to the report, LH would pledge to repay Swiss investors Sfr300m through profit sharing or dividends plus Sfr200m in the form of options on LH shares exercisable in 2010. This would mean the Swiss shareholders would become the largest LH minority investor group with a 7% stake.
It was reported previously that LH was interested in obtaining operational control of Swiss and integrating the carrier into its own network under terms that would allow Swiss to retain its individual branding and hub in Zurich. The Zurich airport would complement LH hubs in Munich and Frankfurt as well as Star Alliance partner Austrian Airlines’ Vienna hub.
