Lufthansa nears rescue making Germany its top shareholder
Deutsche Lufthansa AG said it’s close to a multibillion euro bailout deal that would see the state become its biggest shareholder after the coronavirus punctured a decades-long boom in air travel.
Lufthansa confirmed in a statement it’s in advanced talks with Germany’s WSF Economic Stabilization Fund for aid of as much as 9 billion euros ($9.9 billion). The package would include a 3 billion euro loan, a so-called silent participation and the WSF obtaining a 20% stake through a capital issuance, Lufthansa said.
The government would also receive a convertible bond equivalent to an additional 5% plus one share of the company’s increased capital. Under German law, a 25% plus one share stake would enable the state to block motions at annual general meetings, giving it a veto over hostile takeover attempts.
