Lufthansa in talks to buy SAS

Germany's Lufthansa is in talks to buy Scandinavia's loss-making SAS as it hunts for bargains among airlines hit by crippling fuel costs and economic weakness, sources familiar with the matter said.

"Exclusive negotiations are being held," one of the sources told Reuters, adding that SAS had approached Lufthansa about a possible deal in May.
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The sources stressed that a takeover of SAS, which is 50 percent owned by the Swedish, Norwegian and Danish governments and over 7 percent by the Wallenberg family, was not a foregone conclusion.

"Whether this leads to a deal remains open," said another source with knowledge of Lufthansa's strategy. "It's not fully clear yet where this will go."

SAS confirmed in a statement on Friday that it was evaluating "various structural possibilities for the group", but a spokesman declined to say whom the carrier was talking to.

"It must be emphasized that no decision has been taken," SAS said.

Norway's Trade and Industry Minister Sylvia Brustad told Reuters on Friday that SAS was mulling an ownership change: "We are aware that SAS is considering whether it is an advantage to bring in other owners."

A spokesman for Lufthansa declined to comment.

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