Italy Delays Sale of ITA Airways Stake to Lufthansa

ROME/FRANKFURT (Reuters) – Italy's Treasury has paused the sale of a minority stake in ITA Airways to Lufthansa due to a pricing dispute. Two sources familiar with the situation reported on Tuesday that Italy intends not to "undersell" ITA.

In July, Lufthansa received EU antitrust approval to purchase a 41% stake in state-owned ITA, the successor to the bankrupt Alitalia, for €325 million ($354 million). This move aims to enhance Lufthansa's footprint in the lucrative southern European market.

The disagreement between the Italian economy ministry and Lufthansa centers on a €10 million difference in the sale price. This was corroborated by a source who declined to be named due to the sensitivity of the matter.

The final price may be influenced by the value assigned to a subsequent stake, which is anticipated to be sold several years following the initial 41% acquisition.

A Lufthansa spokesperson stated the airline would comply with the contractual terms for its ITA investment and confirmed that an offer required for securing EU antitrust approval had been submitted. This offer included concessions like transferring flight slots to competitors.

However, the offer was delayed from being sent to the European Commission due to the ongoing price dispute.

($1 = 0.9175 euros)