Air France-KLM shares-for-salary plan finalised

4th March 2005, Comments 0 comments

PARIS, March 3 (AFP) - The French government said Thursday that an employee shares-for-salary plan it had carried out at Air France-KLM will boost the airline's value by about EUR 300 million (USD 393 million).

PARIS, March 3 (AFP) - The French government said Thursday that an employee shares-for-salary plan it had carried out at Air France-KLM will boost the airline's value by about EUR 300 million (USD 393 million).

The finance ministry said the plan and the social agreements that accompany it would add value to the carrier "on the order of EUR 300 million" over six years.

The French state last December decided to offer an 18.4 percent stake in the airline, formed from the merger of Dutch carrier KLM and its French rival.

The government holding at the time was 44.2 percent.

Under a two-part scheme, 8.414 million shares at a preferential price were reserved for employees. Another 13.186 million shares were offered by the state to employees in exchange for salary reductions.

"The EUR 300 million figure is an estimate," a ministry souce said, "because we don't know what the salary increases would have been in the future if we hadn't had this agreement."

© AFP

Subject: French News

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