Lufthansa gets bailout from German government
The flagship carrier ’s stocks rally over 5% on the news
Stocks impacted: Lufthansa (LHA)
The German government and Lufthansa have reached an agreement on state aid worth 9 billion of euros on Monday. The rescue package will give the government a 20% stake in the group for €2.56 per share ($2.79). As a result of the deal, the German government turned into the single largest shareholder in the troubled company. At that, the government has the option to increase its stake to 25% plus one share, enabling it to block any potential takeover. The agreement is still pending approval by the German coronavirus rescue fund's steering committee and the EU commission. Lufthansa shares jumped on the news and extend gains on Tuesday, rallying more than 5%.
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