Lufthansa looking to merge European catering unit with peer: Sources

Lufthansa is looking to merge the European operations of its catering unit LSG with a peer as it struggles with low margins in a competitive market on the continent, people close to the matter said. Lufthansa has provided information to potential bidders and has asked them to make offers for the business in early April, the people said. Austria's Do&Co and Switzerland's Gategroup are expected to make offers for the European LSG operations, the people said. While Lufthansa is currently focused on finding a solution for its European operations, a deal for its international business could follow at a later stage, the people said. The catering business is challenged by a large number of locations it serves, high staff costs and exposure to currency exchange rates, CE Carsten Spohr said recently. <br/>