Lufthansa and Etihad in merger talks, claims Italian paper

Milan

GERMANY'S Lufthansa and Etihad Airways are in talks to possibly merge the two airlines, Italian newspaper Il Messaggero said in an unsourced report on Tuesday, boosting the German airline's share price.

According to the paper, managers from both companies have for weeks been examining the possibility of Etihad buying a 30 to 40 per cent stake in Lufthansa through a sale of new shares to the Abu Dhabi state-owned airline.