Lufthansa Confirms Talks to Hand Germany 25% Stake in Rescue (1)

Europe’s biggest airline is about to get an important new shareholder.

Deutsche Lufthansa AG on Thursday confirmed it’s discussing handing the German government a stake of up to 25% plus one share as part of a 9 billion-euro ($9.7 billion) bailout. A holding at that level would give state officials veto power over decisions such as job cuts and the carrier’s commercial strategy.

The talks are ongoing on a package that would also include loans and a so-called silent stake similar to preferred stock, Lufthansa said. The state-owned shares may be issued at their nominal value, providing the government with ...