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Lufthansa is expected to submit a fresh round of concessions to EU regulators over its planned €325mn ($348mn) investment in ITA Airways, after its earlier offer in May 2023 did not quell anticompetition concerns. Lufthansa has to submit “certain additional remedies to address the concerns raised by the commission”, said the Italian Finance Ministry. Lufthansa was even upgraded to IG-status of Baa3 by Moody’s in January 2024 with the planned deal supporting the rating action. As per sources, the previous offer was considered inadequate, involving sharing flight routes with rivals out of Rome and Milan Linate whilst also giving up slots on eight European routes. They noted that June 6 is the official deadline to sign-off on the deal.
Lufthansa’s bonds were trading stable with its 3.5% 2029s at 97.14, yielding 4.12%.
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