The Italian government will begin talks with the Lufthansa Group over Lufthansa's latest offer to acquire a stake in ITA Airways.
On Friday, Italy's Ministry of Economy and Finance signed the letter of intent that Lufthansa Group submitted last week related to Italian government-owned airline.
"The parties will now start negotiations on the terms of a possible stake in ITA," a Lufthansa Group spokeswoman confirmed. "The parties have agreed to not disclose any contents of the talks."
When it submitted its offer on Jan. 18, Lufthansa said it would initially seek a minority stake in ITA, plus options to purchase the remaining shares of the carrier at a later date.
Obtaining ITA would give the Lufthansa family of airlines a new hub in Italy, which the company says is its most important market outside of its current home markets and the U.S.
Among the carriers owned by Lufthansa Group are Lufthansa, Swiss, Austrian, Brussels, Edelweis and Eurowings. Lufthansa Group also owns the regional carrier Air Dolomiti, which is based in the northern Italian city of Verona.