2/27/2019, 12:25 PM (Source: TeleTrader)
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Air France-KLM shares plummet more than 11%

Franco-Dutch airline holding company Air France–KLM's shares experienced a steep drop on Wednesday following the news that the Netherlands would double its stake in the airline.

The airline's shares were down 11.51% at 12:10 pm CET on Wednesday. The Netherlands's Minister of Finance Wopke Hoekstra had previously said that the country would increase the number of shares it owned from 5.9% to 12.68% in a bid to build up a shareholding equal to France's, which owns 14.3% of the company. He also stated that the decision was made in order to help protect the thousands of jobs and investments made by KLM in Amsterdam’s Schiphol airport.

Hoekstra additionally noted that The Hague has been worried that recent changes to Air France-KLM’s management structure meant the company’s governance was "less balanced" and relegated the Dutch flag carrier to "a less prominent role" in the company.

Breaking the News / DZ