Portugal picks Lufthansa to buy 44.9% of TAP for €1.2 billion

By Reuters News

LISBON, Oct 14 (Reuters) - Portugal's government on Wednesday picked Lufthansa LHAG.DE to acquire a 44.9% stake in TAP Air Portugal for €1.2 billion ($1.34 billion), making the German airline the strategic partner of one of Europe's last unaligned flag carriers, Prime Minister Luis Montenegro told a news briefing.

Lufthansa, which already owns Austrian Airlines, ITA Airways and SWISS, beat rival Air France-KLM after both airlines submitted improved final bids in late September. Montenegro said the winning bid exceeded Air France-KLM's offer by 16%.

($1 = 0.8932 euros)

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