Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Germany could take further public stakes in companies - minister

Published 11/07/2020, 12:19
Updated 11/07/2020, 12:20
© Reuters. German minister, CureVac shareholder Hopp give statement

© Reuters. German minister, CureVac shareholder Hopp give statement

BERLIN (Reuters) - Germany will take further stakes in companies threatened by the coronavirus crisis, Economy Minister Peter Altmaier said, adding that "probably a few dozen" firms might follow airline group Lufthansa in passing into partial state ownership.

Shareholders backed a 9 billion euro government bailout last month, securing the future of Germany's flagship carrier after it was brought to the brink of collapse by the travel slump caused by the pandemic.

In an interview with Saturday's Frankfurter Allgemeine newspaper, Altmaier said: "We're talking about perhaps a few dozen cases. In these very limited number of cases we will use the possibilities offered by the economic stabilisation fund, including taking a stake where appropriate."

It was also possible that the state would buy into other strategically important companies, like vaccine maker CureVac, in that case fending off an attempt by the United States government to buy it.

"I've always made it clear that state stakes must be an absolute exception," he added.

On the airline group, which this week announced plans to cut 20% of its leadership positions and 1,000 administrative jobs, Altmaier said the government would not stand in the way of lay-offs.

© Reuters. German minister, CureVac shareholder Hopp give statement

Turning to another major company in which Germany holds a large stake, Altmaier said a decision on the 15% stake in Commerzbank (DE:CBKG) it took to ward off its collapse during the financial crisis would be made next year.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.