Lufthansa shares soar as major investor backs €9bn bailout
Deutsche Lufthansa AG
€6.65
17:19 25/04/24
Shares in German flag carrier Lufthansa soared on Thursday after major shareholder Heinz Hermann Thiele said he would back a €9bn government bailout for the airline, which has been hammered by the coronavirus pandemic.
Xetra DAX
17,917.28
18:59 25/04/24
Thiele last week expressed doubts over the deal, which gives the government a 20% stake in the company, plus a blocking share, and two seats on the supervisory board.
However, billionaire Thiele, who holds 15.5% of Lufthansa, told the Frankfurter Allgemeine newspaper on Wednesday: “I will vote for the proposal.”
Shareholders are due to vote on the bailout at Lufthansa's virtual extraordinary general meeting on Thursday. Thiele’s support is crucial for the deal, which needs two-thirds backing for approval. Only 38% of shareholders registered for the meeting, which meant Thiele’s stake translated into about 41% of the votes.
Thiele had accused the airline of not examining all available options, and had suggested an indirect government holding in Lufthansa through Germany's KfW development bank.
Lufthansa warned that it would have to seek protection from creditors within days if the deal was rejected.