Austrian Airlines AG (AUA.VI) Friday said it would offer EUR0.50 a share to remaining minority shareholders in a squeeze out which still needs approval from the airlines' board of directors.

The airline said in a statement that its executive board and managing directors from majority shareholder Oesterreichische Luftverkehrs-Holding-GmbH (OeLH) had agreed the deal but still needed the approval of Austrian Airlines' board of directors.

"A decision endorsing the squeeze out will be taken by an extraordinary shareholder meeting, which will presumably be held in mid-December," the statement said.

According to the statement, minority shareholders could receive their cash compensation on the squeeze-out terms in the first half of 2010.

OeLH holds 95.4% of Austrian Airlines' shares. Deutsche Lufthansa AG (LHA.XE) owns a 49.8%-stake in the holding company. The remainder is held by a foundation supported by the Austrian state.

Trade of the remaining Austrian shares was suspended Friday.

-Frankfurt Bureau, Dow Jones Newswires; 49-69-2972-5500.