Germany set to take Lufthansa stake in landmark $9.8-billion bailout

Lufthansa planes park at the airport in Duesseldorf, Germany | AP/PTI
Germany will offer Deutsche Lufthansa AG a 9 billion euros ($9.8 billion) bailout that thrusts the state back into the heart of a company privatised with fanfare two decades ago.

The aid package involves taking an initial 20 per cent stake that could rise to a blocking minority of 25per cent plus one share in the event of a hostile takeover, the carrier said on Monday.

The plan, which requires European Union approval and will almost certainly be challenged by rival airlines such as Ryanair Holdings, gives Germany an effective veto over company strategy.


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