0527 GMT - There's much to like about Portugal's TAP for Lufthansa, but a part-takeover comes at a steep financial cost, analysts Alex Irving and Antoine Madre at Bernstein write in a note. Lufthansa won out over rival Air France-KLM to take an up to 49.9% stake in the flag carrier for some 1.2 billion euros, Lisbon said Wednesday. The airline looks a good asset, Irving and Madre say, pointing to a "defendable geographic niche" with a key Brazil connection. Still, the price looks high at a premium earnings multiple, they say. "Scale is one thing, improving margins is a greater challenge," the analysts say.
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