Austrian Airlines EGM To Decide On Squeeze Out On Dec 16

Austrian Airlines AG (AUA.VI) will hold an extraordinary general meeting on December 16 at which its new owner Deutsche Lufthansa AG (LHA.XE) intends to vote through a resolution to squeeze out the remaining minority shareholders, the Austrian carrier said Friday.

Lufthansa has resolved to offer the existing minority shareholders a squeeze out price per share of EUR0.50, excluding costs and provision, Austrian Airlines said in an invitation for the EGM.

Lufthansa signed the takeover of Austrian Airlines in September after having secured the Austrian state's 41.6% stake and placing a successful EUR4.49 a share public takeover offer.

Of the roughly 85.1 million shares issued, 3.9 million have remained in freefloat, corresponding to some 4.6% of the total share capital.

Lufthansa formally exercises its ownership of Austrian Airlines through Oesterreichische Luftverkehrs-Holding-GmbH, or OeLH, an entity created to keep the carrier in Austrian hands and thereby maintain its Austrian flight license.

OeLH will also represent Lufthansa at the EGM.

Company Web sites: www.lufthansa-financials.com; www.austrian.com

-By Flemming E. Hansen, Dow Jones Newswires; [phone]; [e-mail]