Fate of Swiss airline to be known this week

21 Mar, 2005

The fate of Swiss International Air Lines was scheduled to be sealed this week after the government rules on a take-over bid by the German carrier Lufthansa. Lufthansa and Swiss announced on March 14 that they were in "constructive" take-over talks. The government, which is the major shareholder, said it would inform the two airlines on Tuesday whether it will accepot the bid.
The Swiss airliner has operated at a loss for each of the three years since it was created three years ago following the collapse of the national carrier Swissair.
The finance ministery said last week it would take employees' interests into account, along with those of linking Swiss durably to a major international airline network. The government is the majority shareholder in Swiss with just over one fifth of the capital.
Other major shareholders, including banks, cantonal governments and large enterprises have been given details of the Lufthansa offer, hitherto secret.
Lufthansa has so far committed itself only to buying back shares held by small investors, some 14 percent of the total. The size of this offer has been estimated at 65 million Swiss francs (49 million euros, 56 million dollars).

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