NEW YORK (Dow Jones)--Deutsche Lufthansa (LHA.XE) is in talks to buy a stake of just under 25% in JetBlue Airways (JBLU), The New York Times reported Thursday on its DealBook blog, citing people briefed on the matter.
The Times said an announcement could be made as early as Thursday after the markets close.
By limiting its stake to 20%, Lufthansa would remain below federal limits on foreign ownership of a domestic airline, the Times said.
The Times' sources said the investment will be passive, though it opens up an opportunity for Lufthansa to make a bigger deal down the road, possibly some kind of partnership.
Spokespeople from both Lufthansa and JetBlue declined to comment on the report to Dow Jones Newswires.
Shares of JetBlue were recently up 82 cents, or 13.1%, at $7.07, with nearly four times the average daily volume of shares traded.
-By Steven Russolillo, Dow Jones Newswires; 201-938-2205,
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12-13-07 1335ET