Germany holds crisis talks with Lufthansa investor on the bailout: Source

Frankfurt Lufthansa's largest shareholder, billionaire Heinz Hermann Thiel, told Reuters on Monday that the German finance minister will hold talks with the airline for 9 9 billion ($ 10.1 billion).

Considering the terms of the bailout agreement, the state of Germany will have a 20% direct stake in the company, as well as two seats on its board of supervisors and 15.5% in Lufthansa.

Thiele instead proposed an indirect state partnership with state-owned German development bank KfW [KFW.UL] as an alternative to external government share.

Lufthansa and the German Ministry of Finance declined to comment on the meeting. Thiel could not be reached for comment.

Like the rest of the aviation industry due to the coronavirus pandemic, Lufthansa also fears a long-haul slowdown, which will force him to bail out.

Lufthansa warned last week that it could not agree on a shareholder vote on Thursday and could apply for protection from creditors under German bankruptcy law if it fails to maintain it.
If participation in Thursday's meeting is less than 50%, a two-thirds majority is required to approve the deal. At the airline's annual general meeting held on May 5, they made up only 33% of the company's share capital.

A spokeswoman said on Sunday that Lufthansa could not provide guidance on the level of attendance at the June 25 meeting.

($ 1 = 0.8949 Euro)

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