Dutch State raises stake from 5.9% to near 13%

Old Feb 26, 19, 12:13 pm
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Dutch State raises stake from 5.9% to near 13%

According to nu.nl, the Dutch state will take a share in Air France - KLM.

Weren’t they already a minority stake holder?

Nederlandse staat neemt belang in Air France-KLM
https://www.nu.nl/algemeen/5763243/n...rance-klm.html
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Old Feb 26, 19, 12:54 pm
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They were, but only in KLM. This is in the holding KLM-AirFrance.
They spent 680mln Euro to get a 12,6% stake. They aim to increase this stake to 14%, so it'll be the exact same as the French have.
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Old Feb 26, 19, 12:54 pm
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They had shares in KLM, not the holding.
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Old Feb 26, 19, 1:06 pm
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Loyalty Lobby has a good write up about it.

https://loyaltylobby.com/2019/02/26/...tch-interests/
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Old Feb 26, 19, 10:10 pm
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Dutch State raises stake from 5.9% to near 13%

https://www.bloomberg.com/news/artic...o-match-france

Apparently, the move took AF by surprise. Could be the prelude of a nationalistic fight: not a good news.

I wonder where those 7% shares come from. That's a lot of shares.Would explain why the share price went from about 10 to 12.7 in five days.

Apparently the French State owns 14%, Dutch State 13%, DL and MU 9% each.
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Old Feb 26, 19, 10:46 pm
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Originally Posted by brunos View Post
https://www.bloomberg.com/news/artic...o-match-france

Apparently, the move took AF by surprise. Could be the prelude of a nationalistic fight: not a good news.

I wonder where those 7% shares come from. That's a lot of shares.Would explain why the share price went from about 10 to 12.7 in five days.

Apparently the French State owns 14%, Dutch State 13%, DL and MU 9% each.
Most funny are Bruno Lemaire's comments, that AFKLM should be run according to its own interest, free from national state interventions.

Last edited by carnarvon; Feb 27, 19 at 1:47 am
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Old Feb 26, 19, 11:32 pm
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Originally Posted by carnarvon View Post
Most funny are Bruno Lemaire's comments, that AFKLM should be run according go its own interest, free from national state interventions.
Yes. I almost fell from my chair when I read that statement
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Old Feb 26, 19, 11:51 pm
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Another interesting article (in French) this morning. A little bit over dramatic IMO.
https://www.latribune.fr/entreprises...is-808902.html
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Old Feb 27, 19, 12:10 am
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"Dutch State raises stake from 5.9% to near 13% "

I stand to be correct on this, but I thought that the Dutch state already owned 5.9% of KLM, and has now purchased 12.68% of the shares in the Air France-KLM holding. This holding in turn is a minority shareholder in KLM, albeit the largest at 49%.

Johan
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Old Feb 27, 19, 1:24 am
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Originally Posted by johan rebel View Post
"Dutch State raises stake from 5.9% to near 13% "

I stand to be correct on this, but I thought that the Dutch state already owned 5.9% of KLM, and has now purchased 12.68% of the shares in the Air France-KLM holding. This holding in turn is a minority shareholder in KLM, albeit the largest at 49%.

Johan
All information indeed suggest that the purchase was for AFKL (holding) shares, which would explain the 25% rise in share price
And even Lemaire (French minister) indicates that this was a total surprise.
The French, especially the French government, were running AFKL as a pure French firm. Will be more difficult now
Like everyone else, I find the statement by Lemaire about no State interference idiotic

BTW the share price lost 12% this morning as investors realized that the recent surge was technical (Dutch purchases) and augur badly of the future The French State still has double votes. But in a couple of years, DL, MU and The Dutch State will have the same status

Last edited by brunos; Feb 27, 19 at 1:34 am
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Old Feb 27, 19, 1:50 am
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If the Dutch state equal ownership could balance and as a result "cancel" the French state influence in AFKL, that would be nice.

It may happen when you know how pragmatic and business oriented Dutch people can be.
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Old Feb 27, 19, 1:57 am
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The next step will be the appointment of representative of the Dutch state to AFKL Board.
But remember that the bylaws constrain the Borad composition:
https://www.airfranceklm.com/en/board-directors
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Old Feb 27, 19, 3:14 am
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https://europeantransit.wordpress.com/2019/02/27/aviation-netherlands-takes-stake-in-air-france-klm/

Makes me feel that there will be less of a claim to AF/KLM being a French run company... Air France / KLM will now have equal French & Duch representation, and the Dutch wing making much more than AF. I wouldn't be suprised if we hear shouts of wanting to move more of AF/KLM to the Netherlands... Still unlikely to happen in practice though.
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Old Feb 27, 19, 4:19 am
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Well, it seems all gloves are off.
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Old Feb 27, 19, 5:32 am
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Well, it seems that gloves have always been off on the french side, where strong political influence on companies is business as usual. Directly and indirectly, KLM and Schiphol provide for about 1% of jobs in the Netherlands (about .5% directly). With the French continuously trying to get influence, traffic and money flowing from AMS towards CDG, that is a major risk to the dutch economy. Without the French government influence, you would actually expect AF/KLM to start moving more towards the KLM way of doing business, with KLM earnings more than 4-fold that of AF, better customer experience and way better work ethic. I can only imagine the US frustration with the french way of doing things within the DL/AF/KLM partnership.

As less french influence is never going to happen, the only way to bring balance back is more dutch influence. Exactly what happened here, with a huge approval rating among voters (initial polls say something like 90+%). And it's dirt cheap. buying major influence on about 1% of the 750 billion euro GDP (which is worth 7.5 billion) for about 650 million euro's in shares.
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