Deals
Germany Will Take Lufthansa Stake in Landmark $9.8 Billion Bailout
- Government’s holding to start at 20% and could rise above 25%
- The package includes 5.7 billion euros in silent participation
Grounded Deutsche Lufthansa AG passenger aircraft sit near the control tower at Munich Airport.
Photographer: Michaela Handrek-Rehle/BloombergThis article is for subscribers only.
Germany will offer Deutsche Lufthansa AG a 9 billion-euro ($9.8 billion) bailout that thrusts the state back into the heart of a company privatized with fanfare two decades ago.
The aid package involves taking an initial 20% stake that could rise to a blocking minority of 25% plus one share in the event of a hostile takeover, the carrier said in a statement on Monday. The plan, which requires European Union approval and will almost certainly be challenged by rival airlines such as Ryanair Holdings Plc, gives Germany an effective veto over company strategy.