Lufthansa Buys $300M Stake in JetBlue

German giant will own 19% of ailing US airline
By Zach Samalin,  Newser Staff
Posted Dec 13, 2007 4:59 PM CST
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)
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(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.