Unions at Austrian Airlines, in which the government is selling a stake, threatened industrial action on Friday.

Austrian's works council said that the airline's management had snubbed the unions with a weaker offer in wage talks which broke off on Thursday.

Asked if a strike was possible, works council head Alfred Junghans said: "Nothing is ruled out."

The unions plan to announce their next steps on Monday.

Three airlines shortlisted as possible stake buyers are looking into Austrian's books -- Germany's Lufthansa, Air France-KLM and Russia's S7.

Binding offers are due this month for the stake of up to 43 percent of the carrier.

Lufthansa is favored by the government and state holding company OeIAG while workers' representatives would favor a different buyer because they fear Lufthansa will make the biggest job cuts, sources close to the deal have said.

Unions have demanded a pay rise of more than 4 percent in talks that started last month, while the company had so far offered 3.7 percent.

The unions say the company reneged on this offer on Thursday.

The airline said in a statement that it had "unbundled" its offer.