Lufthansa Will Get $10B Bailout, Gives Up 20% Stake to Govt
Lufthansa finds its savior, the German government. The company that was privatized two decades ago, will receive a 9 billion-euro ($9.8 billion) bailout. That financial help also comes with a catch. The government would be taking an initial 20% stake that could rise to 25% plus one share in the event of a takeover, Bloomberg reports.
The plan is not a done deal yet. It requires European Union approval and will face scrutiny from its rivals in Europe. Lufthansa was trying to avoid any government influence, but it was in dire need of cash after the coronavirus pandemic grounded most of its fleet.
The package is the biggest corporate rescue in Germany during the current pandemic. The German government has set up the 100 billion-euro fund