FRANKFURT (Reuters) - German public-sector lender BayernLB BAYLB.UL said on Tuesday that it has sold a stake of roughly 2 percent in Germany’s flagship airline Lufthansa (LHAG.DE) to investors.
The move is part of BayernLB’s efforts to meet European Union demands linked to the lender’s state bailout, a BayernLB spokesman said.
According to a person close to the matter BayernLB sold 8.8 million Lufthansa shares at 14.43 euros each in a 127 million-euro ($170 million) transaction.
Officials at Lufthansa said they could not comment on trades made by shareholders. Investment bank UBS UBSN.VX, which handled the placement, declined to comment.
BayernLB ran into trouble in 2008 after risky investments turned sour in the financial crisis, prompting German regional state Bavaria to inject 10 billion euros in fresh capital.
In July last year Europe’s competition watchdog and the owners of the wholesale lender agreed on a restructuring of BayernLB including the shedding of non-core interests.
Reporting by Arno Schuetze, Alexander Hübner and Maria Sheahan; Editing by Greg Mahlich