Poland sees Lufthansa interested in LOT: paper

Germany's Lufthansa is interested in buying a majority stake in Polish national carrier LOT LOT.UL, a deputy treasury minister was quoted as saying on Thursday.

Poland's new government is determined to relaunch the stalled privatization of state companies, including LOT, with most of the larger sell-offs planned through the Warsaw bourse.

But recent turmoil on financial markets has raised doubts whether the privatization plans would remain intact.

"Lufthansa is interested in a stake in LOT under the condition that, one, the transaction is fully approved by the Treasury, and two, the Treasury sells a majority stake," Polish Deputy Treasury Minister Zdzislaw Gawlik was quoted as saying in daily Dziennik.

The ministry has said it would like to sell its entire 68 percent stake in the carrier.

Lufthansa, which already cooperates with LOT through their membership of the Star Alliance, declined to comment.

Unicredit analyst Uwe Weinreich said the German carrier would more likely be interested in buying European airlines in rival alliance groupings.

"Europe is certainly the priority for Lufthansa. The need for action is not as great with its own Star Alliance members as with those belonging to rival alliances," Weinreich said.

"Poland is interesting, of course, looking at the market potential," Weinreich added. "If someone else were to be prepared to buy LOT, it would certainly be advisable (for Lufthansa) to take action themselves."

LOT flirted with a bourse listing in recent years, but the collapse of strategic investor Swissair and the changing plans of successive governments thwarted the planned initial public offering.

In the meantime, more nimble no-frills carriers grabbed a large chunk of the growing market after Poland joined the European Union four years ago.

The bankruptcy administrator for Swissair holds a 25 percent stake, with LOT employees holding 7 percent.

Source: By Marynia Kruk and Andreas Moeser, David Holmes/Rory Channing)