WEST PALM BEACH, FL (www.hedgeco.net) – Wolfgang Mayrhuber, the CEO of Lufthansa Airlines said his company will fight to avert possible hedge fund attacks. According to news reports, hedge funds have bought shares in the German airline firm. Mayrhuber told the Spiegel Magazine according to Reuters news reports, “We don’t lie down on the couch and sleep, of course, you need strategies to meet any possible attack, but I won’t reveal these.”

According to Mayrhuber, a growing number of hedge fund managers have acquired large shares of the airline, and such shares were purchased during market dips. He said the firm would vigorouslyfight back any attempts by anyone to take over the airline. He further explained that such attempts would be very hard to achieve, because of what he described as “bilateral air connectionsagreements” involved here.

Hedge funds have been under scrutiny in Germany since their activities last year led to the resignation of the head of the German stock market boss. Some German leaders have been concerned atwhat they perceived as vulnerable German Blue-chip firms targeted for hedge fund takeovers. Franz Muentefering of the Social Democrats was instrumental in fuelling such debate.

The chief economist of Commerzbank recently said that hedge funds have increasingly targeted their bank for takeover, and that hedge funds now control between 10 and 15 percent of the bank’s stock. Some have warned that the current market value of Lufthansa airlines estimated to be about $6.28 billion is too low, in view of the rising fuel costs. The Lufthansa airline authorities believe its fuel costs have increased by nearly 40 percent. The low valuation of the airline may have generated hedge fund interest in the firm.

Paul Oranika
Contributing Writer
HedgeCo.Net
Email: Editor@hedgeco.net

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