Lufthansa’s biggest investor to back govt bailout deal
COLOGNE: Deutsche Lufthansa AG’S biggest
€9bil stockholder said he’d vote in favor of a (Us$10bil) government bailout, giving the rescue plan a shot of momentum on the eve of a crunch vote.
Billionaire Heinz Hermann Thiele told Frankfurter Allgemeine Zeitung that he’d support the package at yesterday’s special shareholder meeting, ending days of frenzied speculation about his intentions. He had earlier criticized a steep discount being granted to the German government on a 20% stake, and held the votes to single-handedly stop the share sale.
“I will vote in favor of the proposed resolution,” Thiele told the newspaper in an interview published on its website Wednesday.
With Thiele’s support, the state rescue appears likely to secure the two-thirds backing required for approval. Because only 38% of shareholders registered for the meeting, Thiele’s 15.5% stake translates into about 41% of the votes. Lufthansa needs to win about half of the rest for the share sale to pass. It’s only part of the larger bailout package that also includes state loans and a so-called silent participation.
Approval of the deal would bring the curtain down on weeks of high-stakes drama that’s buffeted Lufthansa’s stock and bonds and forced it to examine insolvency. It would also thrust the state back into the heart of a company that was nationalised with fanfare two decades ago.
Analysts at Societe Generale and Berenberg said they expect the measure to prevail Thursday with the support of the 79-year-old Thiele. Lufthansa shares jumped more than 17% on Tradegate on late Wednesday after his comments were reported.— Bloomberg