ROME (dpa-AFX) - The long-running attempt by Lufthansa to acquire a stake
in the state-owned Italian airline Ita took another possible step
forward on Tuesday, as the parties involved offered the European
Commission further concessions.

Brussels had been offered 'additions' in line with the commission's
demands, the Italian Finance Ministry said, without providing any
details. Lufthansa also refused to provide details about the apparent
concessions.

Lufthansa wants initially to buy a 41% stake in the state-owned
airline Ita Airways, formerly Alitalia. In return, Ita is to receive
?325 million ($350 million) in equity from Lufthansa.

Later, the German airline will be able to acquire a further 49% and
then the remaining 10% under certain conditions.

However, the European Commission has not yet approved the project due
to competition law concerns. It fears that customers could suffer
from rising prices or poorer quality service after the takeover.

A decision is expected next month.


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