FRANKFURT, May 1 — Lufthansa is negotiating a €10 billion (RM47 billion) bailout that would result in Germany taking a 25.1 per cent stake in the airline, weekly paper Der Spiegel said today.
Of that total, €5.5 billion would be in the form of non-voting capital, for which the German government wants a coupon of nine per cent, the paper said.
A further €3.5 billion in loans would be provided by state bank Kreditanstalt fur Wiederaufbau (KFW), the paper said, adding that Belgium, Austria and Switzerland might contribute towards the bailout.
A government source who declined to be named said: “The negotiations and discussions continue.”
Reuters on Wednesday reported that Lufthansa is negotiating a €9 billion bailout, with loans from Austria, Germany and Switzerland amounting to €6 billion, with an equity component of about €3 billion, citing a source close to the matter.
Lufthansa and was not immediately available for comment. — Reuters
