Lufthansa logs interest in Austrian Airlines stake

FRANKFURT (Reuters) - Lufthansa (LHAG.DE) has formally announced its interest in acquiring a stake on offer in Austrian Airlines (AUAV.VI), a spokesman for the German carrier said.

OeIAG is offering its 43 percent share in Austrian, worth around 157 million euros ($233.4 million), but said the size of the stake sold would depend on preserving an Austrian group of core shareholders owning 25 percent between them.

Austrian state holding company OeIAG invited potential bidders for Austrian Airlines to notify it of their interest by August 24.

Potential investors are requested to log their interest with Merrill Lynch, OeIAG's advisers in the deal, and will then receive an information memorandum, it said in a statement.

Austrian's board has screened possible buyers and sources close to the board say a majority favors Lufthansa. The board sees Air France-KLM (AIRF.PA), Aeroflot (AFLT.MM) and Turkish Airlines (THYAO.IS) as second choices.

(Reporting by Angelika Gruber; editing by Rory Channing)