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Lufthansa Buys $300M Stake in JetBlue

Posted Dec 13, 07 4:59 PM CST in Business 

(Newser) – Lufthansa will purchase a 19% stake in lagging JetBlue Airways for about $300 million, a move that reflects the industry-wide consolidation underway in recent months. The sale price of $7.27 a share is a 16% premium on yesterday's closing price of $6.25. The announcement immediately bounced JetBlue shares up 13% to $7.06, the Wall Street Journal reports.

The German airline giant, which will get one seat on the JetBlue board, is not allowed to own more than 25% of a US carrier. Rising fuel prices have put the relatively young JetBlue in the red in recent years, and it was embarrassed last winter after bungling service during a snowstorm. Founder David Neeleman was ousted as CEO in May.

Source Wall Street Journal

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Planes of German airline Lufthansa are seen at Frankfurt International Airport in Germany in this May 15, 2007 file picture. Airline Deutsche Lufthansa AG said Thursday, Oct. 25, 2007 third-quarter profit...   (Associated Press)
  (Getty Images)
JetBlue planes wait at terminal gates at New York's John F. Kennedy International Airport in this Feb. 16, 2007 file photo. U.S. (AP Photos/Bebeto Matthews, File)   (Associated Press)
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