French Gov't to Sell Air France-KLM Stake

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PARIS (AP) - The French government said Thursday it is selling a 17.7 percent stake in Air France-KLM, the world's largest airline, in a move that will help the state reduce its debt and scale back its influence on the Franco-Dutch carrier.

A Finance Ministry spokeswoman said the government asked two banks, France's Societe General SA and the Netherlands' ABN Amro Holding NV, to handle the sale of the stake involving some 48 million shares.

Using Wednesday's closing price as a benchmark, the stake would be worth about euro693 million ($930 million).

Air France-KLM shares fell 1.6 percent in early trading Thursday.

The French state lost majority control of Air France earlier this year as a result of the company's merger with KLM Royal Dutch Airlines. Before Thursday's sale, the state still owned 44 percent of the joint company; with the selloff, its stake will decline to about 26 percent.
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