Lufthansa’s Chief Executive Officer Carsten Spohr announced on Sunday that the company would seek to avoid grounding and insolvency before a showdown between the airline’s biggest shareholder and the German government over the terms of a 9 billion Euro bailout.
Lufthansa’s (LHAG.DE) shares were down by 5.7% on Monday morning.
The 79-year-old billionaire Heinz Hermann Thiele declined to the terms of the bailout deal. While his intentions are unclear, he has expressed dissatisfaction with the rescue plan. Thiele has a 15.5% stake in Lufthansa, making him the largest shareholder of the company.
The 9 billion Euro bailout deal would give the German government a 20% direct stake in the company as well as two seats on its supervisory board.
“The government has presented a good and balanced offer to which the supervisory board has agreed,” Germany’s Economy Ministry Spokesman Korbinian Wagner said in an interview.
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