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Lufthansa confirms advanced talks for state aid

Deutsche Lufthansa AG confirmed Thursday that it is in advanced talks with the German economic stabilization fund for up to 9 billion euros ($9.84 billion) in state aid as it tries to shore up its finances amid the coronavirus, an agreement that will see the fund take a stake in the airline. The package will include a loan of EUR3 billion from the KfW--a German state-owned bank--and a stake purchase by the economic stabilization fund, known as the WSF, the carrier said. The WSF will take a 20% stake in Lufthansa through a future capital increase that will need to be approved by an extraordinary general meeting, the airline said. "In addition, a convertible bond is to be agreed with the WSF, which can be exchanged for a further 5% plus one share also at the nominal value in the event of a public takeover offer by a third party," it said.

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