UPDATE 2-Lufthansa agrees AUA squeeze-out terms

VIENNA, Oct 23 (Reuters) - German airline Lufthansa will pay 0.50 euro per share to remaining Austrian Airlines (AUA) shareholders in its takeover of the carrier, AUA said on Friday.

AUA said the amount still needed to be approved by its board and a decision endorsing the squeeze-out will be taken at an extraordinary shareholders' meeting in mid-December.

AUA shares were 23 percent lower at 3.32 euros by 0903 GMT after an hour of volatile trade following a brief suspension by the Austrian stock exchange. Earlier in the session they hit their lowest value since July 2008.

Lufthansa, which holds a 95.4 percent stake in the Austrian flag carrier, announced the squeeze-out last month when sealing the deal. Lufthansa offered 4.49 euro per share.

The German airline won regulatory approval for its takeover in August after a protracted negotiations with the European Commission.

(Reporting by Peter Dinkloh and Sylvia Westall; Editing by Dan Lalor) Keywords: LUFTHANSA/AUSTRIANAIRLINES ([e-mail]; Vienna Newsroom: [phone]; Reuters Messaging: [e-mail]) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.