US could take equity shares in coronavirus-hit airlines: officials

The US government could take equity shares in airlines and other troubled but vital American corporations as it moves to stabilize an economy amid the new coronavirus pandemic, top US officials said Sunday. White House economics adviser Larry Kudlow said the government should get a stake in companies that receive direct cash grants from the federal government. "I think in return for direct cash grants, which is what the airlines have asked for, I see no reason why the American taxpayer shouldn't get a piece," he said. Treasury Secretary Steven Mnuchin also said the government could take equity positions in return for infusions of taxpayer money. "As the president said, we'll look at each one of these situations," he said. "Some of them are very good companies that just need liquidity and will get loans. Some of these companies may need more significant help and we may be taking warrants or equity as well as that. The president wants to make sure the American taxpayers are compensated. This is not a bailout." Mnuchin said any such transactions would take the form of warrants, a type of security that gives its holder the right to buy or sell an asset at a certain price up to a certain date determined when it is emitted. Warrants can thus be converted into shares.<br/>