Lufthansa is not in talks with Etihad about the Abu Dhabi-based carrier taking a stake in the German airline, a source familiar with the matter said on Tuesday in response to an Italian media report. Italian paper Il Messaggero earlier on Tuesday reported that Etihad and Lufthansa were in talks about a Etihad taking a 30-40% stake as a precursor to a merger, although analysts said they viewed a deal as unlikely. Lufthansa is also not in talks about buying the rest of Air Berlin, partly owned by Etihad, the source added. Lufthansa CEO Carsten Spohr had poured cold water on that Air Berlin speculation last week, telling reporters Air Berlin's high costs, debt pile and also antitrust concerns would be obstacles to any deal. (Reuters)