Lufthansa looking to merge European catering unit with peer - sources
27/03/2019 11:17
FRANKFURT, March 27 (Reuters) - Lufthansa LHAG.DE is
looking to merge the European operations of its catering unit
LSG with a peer as it struggles with low margins in a
competitive market on the continent, people close to the matter
said.
Lufthansa has provided information to potential bidders and
has asked them to make offers for the business in early April,
the people said, adding that Lufthansa was not interested in a
deal with private equity.
Austria's Do&Co DOCO.VI and Switzerland's Gategroup are
expected to make offers for the European LSG operations, the
people said, adding that given its low profitability and low
expected value even medium-sized Do&Co could do a deal without a
partner.
Lufthansa reiterated that it was considering options for
LSG, while Gategroup declined to comment and Do&Co was not
immediately available for comment.
(Reporting by Arno Schuetze
Additional reporting by Ilona Wissenbach
Editing by Tassilo Hummel)
((arno.schuetze@thomsonreuters.com; +49.69.7565.1197; Reuters
Messaging: arno.schuetze.reuters.com@reuters.net))