The German government on Friday declined to comment on possible talks with Lufthansa shareholder Heinz Hermann Thiele after a newspaper reported the billionaire has reached out to Berlin in a standoff over a $10 billion (8.05 billion pounds) rescue package.

A spokesman for the Economy Ministry said: "We can neither confirm, deny nor comment on any talks."

(Reporting by Thomas Seythal and Andreas Rinke; Editing by Michelle Martin)