\Deutsche Lufthansa AG Chief Executive Officer Carsten Spohr is set to meet with Portuguese government officials on Monday as the German airline group weighs a possible investment in state-owned airline TAP SA, according to people familiar with the matter.
Acting on a request by Lufthansa, Portugal’s finance minister and infrastructure minister will hold talks with the CEO, said one of the people. Italian newspaper Corriere della Sera reported earlier on Sunday that Lufthansa will seek to buy an initial 19.9% stake in TAP, citing Portuguese institutional sources.
Portugal’s government reaffirmed its plans in July to privatize TAP, adding that the terms of the sale remain to be defined. The previous administration had aimed to sell at least 51% of the carrier.
Lufthansa, as well as Air France-KLM and IAG SA, the parent company of British Airways and Iberia, have publicly stated their interest in TAP. The Lisbon-based airline’s biggest attraction lies in its links to Brazil, of which it’s the largest European provider. It also maintains a strong presence in Africa and operates a number of flights to North America.
Spohr recently managed to get clearance for Lufthansa’s takeover of a stake in Italian carrier ITA Airways. IAG, on the other hand, dropped its pursuit of Air Europa amid opposition from regulators. Air France-KLM completed a purchase of a stake in Scandinavian carrier SAS AB last week.