Tag Archives: Brussels Airlines

Shares of SAS Surge on Talk of Potential Lufthansa Deal


Interesting news from across the pond today as Scandinavian carrier SAS said in a statement that the airline is conducting “talks about a possible structural solution.” That’s an interesting way to put it.

News reports say that Lufthansa is apparently about ready to make a takeover offer for the airline.

Shares of SAS were up 18% on the news, ending the day with a 16% increase, up to 55.25 kronor or $8.09.

According to Reuters, Lufthansa is mulling a bid for the airline after SAS approached Lufthansa. This news comes as Lufthansa is already in talks to buy Brussels Airlines. A bid by Lufthansa for Austrian Airlines also appears to be in the wings as well.

Bloomberg quoted Exane BNP Paribas analyst Geoff van Klaveren today, as he outlined the current position of SAS. “SAS is not in a financially strong position. SAS can’t be a standalone airline, so something will happen, whether it’ll be a complete takeover or a joint venture on something like long-haul flights.”

Meanwhile, Glitnir analyst Mats Hyttinge told the Associated Press that investors had speculated for a long time about SAS being a possible takeover target for Lufthansa, which has been looking at possible acquisitions for some time.

“I think it would be a good solution for SAS. They need financial backing,” Hyttinge said.

However, he noted that SAS’ complicated ownership structure could be an obstacle. “Considering there are several different states among the owners it would turn into a political process,” he said.

The Swedish government has been considering selling its 21.4 percent stake in SAS, while the Norwegian government, which owns 14.3 percent, has said it would rather buy more shares in the company, he said.

In Denmark, which also owns 14.3 percent, the signals have been mixed and a decision would probably depend on the price offered, Hyttinge said.