Turkish Airlines Closer To Buying LOT

April 23, 2012

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Turkish Airlines has examined the financial condition of Poland's flag carrier LOT ahead of a potential bid, a Polish newspaper reported.

Polish daily Rzeczpospolita, without naming its source, said the Turkish carrier conducted due diligence of LOT in March. The paper estimated LOT's value at around PLN2 billion zlotys (USD$630.4 million).

A spokeswoman for Poland's Treasury Ministry, which oversees state assets, declined to confirm the report, but said the ministry has held some discussions with Turkish Airlines in recent months.

The treasury will pick an adviser for the sale process in May, she added.

Turkish Airlines' spokesman Ali Genc also confirmed discussions on a possible LOT acquisition were being held.

"No other decision has been taken by the board," he added.

In January, chairman Hamdi Topcu said the carrier would start talks to buy LOT.

(Reuters)