German airline Deutsche Lufthansa AG (LHA.XE) Monday said it has reached an agreement with Sir Micheal Bishop, the co-founder of the British Midland Airways, or bmi, to buy the airline in stages.

The initial stage will see Lufthansa, which already owns 30% less one share of bmi, taking an 80% stake in its U.K.-based peer.

Company Web site: www.lufthansa-financials.com

-By Jan Hromadko, Dow Jones Newswires; +49 69 29 725 503; jan.hromadko@dowjones.com