May 20, 2020 / 4:02 PM / 12 days ago

UPDATE 1-Germany agrees on rescue package for Lufthansa - Der Spiegel

(Adds government reaction, background)

BERLIN, May 20 (Reuters) - The German government has agreed on final details of a rescue package for struggling airline carrier Lufthansa , Der Spiegel magazine reported on Wednesday.

Lufthansa is seeking to tap Germany's economic stabilisation fund to help it weather the coronavirus pandemic and what is expected to be a protracted travel slump.

The ministers in charge put the finishing touches on the bailout package and a government official was on his way to Frankfurt to seal the deal with airline managers, the magazine reported.

The German finance ministry and the economy ministry both declined to comment. A Lufthansa spokesperson also denied any statement on the media report.

The airline said on May 7 that it was negotiating a 9 billion euro bailout with the German government to ensure its future, confirming an earlier Reuters report.

Lufthansa said then that the package included a non-voting capital component, known as a so-called silent participation, a secured loan, and a capital increase which may leave the government with a shareholding of up to 25% plus one share. (Reporting by Michael Nienaber, editing by Emma Thomasson, Madeline Chambers)

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