COVID-19: Lufthansa shareholders shun $10bn bail-out

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Lufthansa has drawn up a plan to prevent an insolvency should a virtual extraordinary shareholders’ meeting on Thursday fail to approve a $10 billion government bailout, a company source told Reuters on Wednesday.

The German government could still get a 20% stake, as originally planned, in two steps without the approval of a shareholders’ meeting or billionaire investor Heinz Hermann Thiele, the source said.

Germany could initially get a roughly 10% stake from a capital increase without subscription rights at 2.56 euros per share, the source added. The remaining stake would come from a regular capital increase in which all Lufthansa shareholders could participate.

The person, who is familiar with the plans, cautioned they were not yet coordinated with the government.

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