Lufthansa eyes 40pc stake in Italy’s ITA

German airline Lufthansa is set to take a 40 per cent stake in Italian national carrier ITA Airways, Italy's Il Foglio newspaper reported Saturday, suggesting the deal could be announced next week.

A spokesman for ITA, which was formed out of the ashes of loss-making Alitalia, declined to comment but said a strategic plan would be presented to the company's board on January 31.

The spokesman added that a data room -- a secure place to store key financial documents, often to allow due diligence before a merger or acquisition -- would be opened "in the following days".

According to Il Foglio, Lufthansa will buy 40 per cent of ITA in a deal that includes making Rome's Fiumicino airport a hub for direct flights to Africa and part of the US route.

It said the deal would need approval from the European Commission.

Loss-making Alitalia was placed under state administration in 2017 but Italy struggled to find an investor to take it over.