Olympic sold to MIG.
ATHENS, March 6 (Reuters) - Greece on Friday reached a deal to sell its ailing Olympic Airlines to Marfin Investment Group (MIG) (
MRFr.AT), despite a bid from private rival Aegean Airlines (
AGNr.AT).
"The government's legal and financial advisers informed us that the negotiations with MIG's advisers for the sale of Olympic's flying activities and technical base ended successfully," Transport Minister Costis Hatzidakis said in a statement.
Aegean's bid was about twice as much as MIG's offer for Olympic's flying operations, but government sources said it was doubtful the merger would meet European Union competition rules.
"The agreement...will be put before the government's privatisations committee, which is awaiting the approval by the European Commission," the minister said.
Aegean, which has been slowly eating away at Olympic's market share over the years, offered 90 million euros ($112 million) for Olympic's flying operations and 20 million euros for its aircraft maintenance base. It also offered 60 million to buy Pantheon, a company set up by the government as a successor of debt-free Olympic Airlines.
Aegean's offer topped MIG's 45.7 million euro bid for Olympic's flying operations and 16.7 million offer for the technical base.
Selling the loss-making state carrier will end strains on the government's budget and wrangling with the EU over illegal subsidies. ($1=1.2654 euro) (Reporting by Lefteris Papadimas and George Georgiopoulos; editing by Leslie Gevirtz)