German government agrees Lufthansa rescue offer: Report

German ministers on Wednesday agreed final details of a rescue deal they will offer coronavirus-stricken airline giant Lufthansa, business daily Handelsblatt reported.

Berlin will take a 20-percent stake in the group, topping it up with a convertible bond worth five percent plus one share — “putting the state in a position to build a blocking minority in case of a hostile takeover”, the newspaper said.

If confirmed, the solution would close weeks of wrangling between Chancellor Angela Merkel’s CDU conservatives and their centre-left junior partners the SPD.

Pro-business politicians among Merkel’s ranks have long rejected excessive state involvement in Lufthansa, saying business decisions should be left up to managers.