Air France-KLM stock plunges on news of Netherlands purchase
Move is aimed at gaining parity with influential French shareholder after a power clash that left the Dutch side of the partnership weakened
Air France-KLM Group fell the most yet after the Dutch government’s surprise decision to buy a stake in the airline raised concern that competing national interests will derail CEO Ben Smith’s efforts to streamline the carrier. The Netherlands purchased a 13% holding, a move aimed at gaining parity with influential shareholder France following a power clash that left the Dutch side of the partnership weakened. The stock dropped as much as 15% in Paris, the most since 2002, when it was just Air France. The current company was created two years later when the French flag carrier merged with its smaller Dutch counterpart. The shares traded 12% lower at €11.24 at 11.13am in Paris on Wednesday, giving Air France-KLM a market value of €4.82bn. “The Dutch stake does not make us more positive,” Bernstein analysts including Daniel Roeska said in a note on Wednesday. “We worry that national, diverging interests will slow the group down in its much-needed restructuring.” KLM and Schiphol Airpo...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.