Lufthansa reportedly eyes LOT, Poland downplays

FRANKFURT (Reuters) - The Polish government poured cold water on a report on Wednesday that Deutsche Lufthansa (LHAG.DE: Quote, Profile, Research) was in talks to buy a stake in Polish airline LOT LOT.UL from the government in Warsaw.

"The privatization process has not started yet," a spokesman for the Polish treasury ministry said.

He said that there were a few investors interested in LOT, but would not comment on whether Lufthansa was among them.

German newspaper Sueddeutsche Zeitung had reported, without citing sources, that LOT Chief Executive Sebastian Mikosz and Lufthansa CEO Wolfgang Mayrhuber had met to discuss a possible takeover.

Lufthansa declined to comment on the matter.

Lufthansa shares rose 1.5 percent to 9.865 euros, outperforming a 0.3 percent gain in Germany's blue-chip DAX index .GDAXI.

This is not the first time Germany's flagship carrier has been reported to be interested in the Polish national carrier.

In January 2008, a Polish newspaper had cited Poland's Deputy Treasury Minister Zdzislaw Gawlik as saying Lufthansa was interested in buying a majority stake in LOT.

The report came as Poland's government was determined to relaunch the stalled privatization of state companies, including LOT. The carrier, which celebrated its 80th anniversary this year, is about 68 percent owned by Poland's treasury.