Lufthansa closes in on $ 10 billion in government rescue deal

BERLIN (Reuters) – Lufthansa (LHAG.DEis in advanced talks to about 9 billion euros ($9,9 billion) state bail-out, what would Germany do you have a 20% stake in his flagship airline, as the countries struggle for air travel-zen, the corona-virus-pandemic.

Lufthansa said on Thursday, a deal that would involve the government in taking two of the seats on its Supervisory Board, but it would only exercise its full voting rights in exceptional cases, such as for the protection of the company against a takeover.

Lufthansa has been in talks with Berlin for a week to help to cope with what the tense trips break-in expected, but was on scramble, how much tax to a yield in return for the support.

Sources involved in the negotiations, said the government’s economic stabilization fund to provide still made the finals, but should do so on Thursday.

Rivals such as the French-Dutch group Air France-KLM group (AIRF.PAand the U.S. airlines American Airlines (AL.Oh), United Airlines (UAL.Ohand Delta Air Lines. (Down in the VALLEY.N) have also sought state aid.

Lufthansa said it expects that the terms of the deal include the waiver of the future dividend payments and limits for the management, by approved, the package would have to by the European Commission.

The plan includes a 3-billion-euro loan from the state-backed bank KfW, and a convertible bond that could be exchanged for a further 5% of the shares plus one share in the case of a public takeover offer, by a third party.

Lufthansa said it hoped the deal can be closed, to secure it without delay of his long-term ability to pay.

The German media reported late on Thursday that an offer had been made, and the German Chancellor, Angela Merkel, said she expected an agreement on a rescue package soon, but did not elaborate.

($1 = 0.9108 number