Demand­s suppor­t worth €9b in exchan­ge for 25% stake in compan­yFRANKFURT: German airline giant Lufthansa confirmed Thursday that it is in talks for Berlin to offer support worth €9 billion ($9.7 billion) in exchange for a 25% stake in the company, as the coronavirus batters the world’s carriers. The “stabilisation package” under discussion with the Federal Economic Stabilisation Fund (WSF) launched in March would include “a silent participation and a secured loan”, Lufthansa said. Meanwhile Bloomberg news reported that some members of Altmaier and Chancellor Angela Merkel’s centre-right CDU/CSU parliamentary group were holding up talks with opposition to a direct government stake in Lufthansa. Lufthansa Chief Executive Carsten Spohr has previously warned that the group is bleeding cash and might have to declare insolvency. The Social Democratic Party (SPD), junior partner in Merkel’s ruling coalition, has warned Lufthansa it cannot expect a blank cheque from Berlin.

Source: The Express Tribune May 08, 2020 04:30 UTC