25 May Avantisteam Stated: Lufthansa And German Govt. Agree On Bailout Deal
(RTTNews) – Deutsche Lufthansa AG (DLAKF, DLAKY) and German Government have agreed on a deal regarding the bailout package for Lufthansa, German news agency dpa reported, citing government sources. The deal could be worth up to $9.8 billion. It would result in German Government becoming the largest shareholder in Deutsche Lufthansa AG with a 20 percent stake. However, “A key point in the talks held behind closed doors in recent weeks is that a government stake of this size would not give it a majority vote capable of blocking key decisions taken by Lufthansa management,” the report said.
Lufthansa had grounded 700 aircrafts or nearly 90 percent of its total capacity in March due to the outbreak of COVID-19. It expects to resume operations in June.
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