Germany to take 25.1% stake in Lufthansa – Der Spiegel

FILE PHOTO: Aircrafts of the German carrier Lufthansa are parked on the tarmac, as the spread of the coronavirus disease (COVID-19) continues, at the airport in Frankfurt, Germany March 24, 2020. REUTERS/Ralph Orlowski

FRANKFURT (Reuters) – Lufthansa (LHAG.DE) is negotiating a 10 billion euro (8.74 billion pounds)bailout that would result in Germany taking a 25.1% stake in the airline, weekly paper Der Spiegel said on Friday.

Of that total, 5.5 billion euros would be in the form of non-voting capital, for which the German government wants a coupon of 9%, the paper said.

A further 3.5 billion euros in loans would be provided by state bank Kreditanstalt für Wiederaufbau (KFW), the paper said, adding that Belgium, Austria and Switzerland might contribute towards the bailout.

Reuters on Wednesday reported that Lufthansa is negotiating a 9 billion euro bailout, with loans from Austria, Germany and Switzerland amounting to 6 billion euros, with an equity component of about 3 billion euros, citing a source close to the matter.

Lufthansa and Germany’s finance ministry were not immediately available for comment.

Reporting by Edward Taylor; Editing by David Goodman

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