Germany throws Lufthansa a $9.8 billion lifeline, agreeing a bailout which gives Berlin a veto in the event of a hostile bid for the airline
Lufthansa has been locked in talks with Berlin for weeks over aid it needs to survive an expected protracted travel slump, with the airline wrangling over how much control to yield in return for financial support.
If Lufthansa faces a hostile takeover, "the economic stabilisation fund may also increase its stake to 25 percent plus one share," the company said, which would offer Berlin a blocking minority. "Before the coronavirus pandemic, the company was operatively healthy and profitable and had good prospects for the future," the economy ministry said in a statement justifying the massive support.
That leaves sign-offs from shareholders – who must agree to any plan that would dilute their investments – and competition regulator the European Commission as the two final hurdles for the rescue.reported Monday that Chancellor Merkel plans to resist potential tough conditions from Brussels, which could include Lufthansa giving up prized landing slots at its bases in Munich and Frankfurt.
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