UPDATE 1 — Portugal picks Lufthansa to buy 44.9% of TAP, sources say

(Adds context throughout) LISBON, Oct 14 (Reuters) — Portugal's government chose Lufthansa on Wednesday to acquire a 44.9% stake in TAP Air Portugal, making the German airline the strategic partner of one of Europe's last independent flag carriers, two people familiar with the matter told Reuters. No other details were immediately available. The government will announce the terms of the deal in a news briefing later in the day, following a cabinet meeting where the decision was taken. Lufthansa, the owner of ITA Airways and SWISS, among others, beat rival Air France-KLM after both airlines submitted improved final bids for TAP in late September. Both airlines declined to comment. The government had said the decision would be based not only on price, but also on each airline's industrial plan for TAP, including its strategy for the carrier's growth and long-term sustainability. TAP's principal appeal is its prized landing slots connecting Lisbon with Brazil, Portuguese-speaking Africa and the United States, routes that underpin Portugal's diaspora ties, tourism flows and investment links. The government wants TAP's partner to expand operations and connectivity across Portugal's airp