Paris, May 04: Air France has acquired Dutch airline
KLM in a deal that creates the biggest European carrier and
the number one worldwide in terms of sales, both companies
said today in a statement.
offering their holdings thereby creating the biggest European airline.
The takeover is a major consolidation within the European
air transport industry and comes a decade after EU competition
officials stepped up pressure on governments to open their
domestic markets in the interests of consumers.
Air France has flown a long way since a controversial
rescue in 1994 which was fiercely opposed by other European
carriers, including KLM.
But mooted plans to take other airlines under its wing,
in particular the Italian carrier Alitalia, have been
grounded, Air France Chief Executive Officer Jean-Cyril
Spinetta told reporters today.
Air France and KLM said that 89.22 per cent of KLM
shareholders had accepted the Air France takeover offer,
tendering their shares in a swap estimated to be worth about
800 million Euros (950 million USD).
The offer has now been extended to May 21, but the
statement said: "Today, Air France declares the offer
unconditional."
Shareholders are to receive 11 Air France shares and 10
Air France warrants for every 10 ordinary KLM shares
exchanged.
The operation has already had the effect of reducing the
French state`s stake from 54 per cent of Air France to 44.7
per cent of Air France-KLM, a de facto privatisation of the
French airline, the joint statement said.
Bureau Report
