BRUSSELS, May 23 (Reuters) - Lufthansa's bid

to acquire a stake in Italian state-owned carrier ITA could lead

to price hikes and fewer frequencies for passengers, EU

antitrust chief Margrethe Vestager said on Thursday.

"It is for the emerging companies to set how to prevent this

from happening. And this is the process that we're in right

now," she told a news conference.

Vestager's comments underscore Lufthansa's uphill battle in

securing her approval for the deal. Sources have told Reuters

that she is poised to block the deal unless Lufthansa

substantially improves its package of remedies offered earlier

this month.