Vienna  - German airline Deutsche Lufthansa AG has submitted a valid bid for Austrian Airlines AG (AUA), the Austrian takeover commission confirmed Thursday, but it said it was still uncertain if there would be a deal.

"Against the background of AUA's economic development and an apparent wide gap between the negotiating positions, it is uncertain whether the transaction can be concluded," the commission said in a statement.

The Austrian government is in the process of selling its 42.75-per-cent stake in the country's ailing flag carrier, but Air France has dropped out of the bidding process.

The commission's statement did not make any mention that the third suitor, the Russian carrier S7 Airlines, had submitted a valid offer by the deadline on Tuesday.

Last week, the management of Austrian Airlines issued a warning that the company would end the year with a deficit of 125 million euros (168 million dollars), mainly as a result of high fuel costs.

The company has debts worth 800 million euros.

The takeover commission made its statement after having told the Vienna stock exchange Thursday morning to stop trade of Austrian Airlines shares, which had lost 30.2 per cent of their value on Wednesday.

Trading resumed after the announcement. (dpa)