Lufthansa confirms in talks with Berlin on $10b rescue

Lufthansa Thursday confirmed it was in talks with the German government over a E9b rescue that will see Berlin take a massive stake in the coronavirus-stricken airline. "The concept, which has not yet been finalised, provides for stabilisation measures in the amount of up to nine billion euros, of which three billion euros is in the form of a loan" from public investment bank KfW, the German aviation giant said. Under the plans mooted with the federal government's economic stabilisation fund (WSF), launched to cushion the impact of the virus pandemic, the WSF would acquire a stake of 20% in the airline group, as well as a convertible bond worth "a further 5% plus one share" in the company. The bond "can be exchanged... in the event of a public takeover offer by a third party," giving Berlin a blocking minority. If agreed, the solution would close weeks of wrangling over Lufthansa between Chancellor Angela Merkel's CDU conservatives and their centre-left junior partners the SPD. <br/>