Austria's government is extending the mandate to sell a stake in Austrian Airlines to December 31, provided an offer from Germany's Lufthansa remains on the table, Austria's finance ministry said on Monday. Government holding company OeIAG's mandate to sell its 42 percent stake in Austrian Airlines (AUA) had been due to expire on Tuesday.
Lufthansa, the sole remaining bidder, has demanded that OeIAG assumes some of AUA's debt. A spokesman for the finance ministry said it approved the extension of the mandate under certain conditions to give OeIAG time for more talks. "The condition is that the privatisation mandate remains unchanged and that Lufthansa's offer remains on the table," finance ministry spokesman Juergen Beilein said.
The mandate allows OeIAG to sell its entire holding, provided that an Austrian key shareholder keeps a 25 percent stake, that AUA's headquarters and its main hub remain in Vienna, that its brand is preserved and jobs secured as far as possible. OeIAG was not immediately available for a comment but it is holding a news conference following a supervisory board meeting due to decide on the sale, which started at 10.30 am (0930 GMT).