Shares of JetBlue Airways Corp. (NASDAQ: JBLU) are soaring after the New York Times reported that Lufthansa (OTC: DLAKY) is negotiating to buy a 20% stake in the discount carrier
"The interest from Lufthansa, which is based in Germany, is the latest example of foreign investors leveraging the strength of the euro against the dollar," according to the DealBook blog. "By limiting its stake to 20 percent, Lufthansa would remain below federal limits on foreign ownership of a domestic airline. Though the investment will be passive, these people told DealBook, it opens up an opportunity for Lufthansa to make a bigger deal down the road, possibly some kind of partnership."
The investment may be the shot in the arm the Forrest Hills, NY-based company needs as it faces increased competition from the likes of Virgin America and Southwest Airlines Co. (NYSE: LUV). Maybe it will help JetBlue expand to additional markets ,which should give Southwest some serious competition.
Lufthansa may buy stake in Jet BLue
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