THE French government is to sell a 17.7 per cent stake in Air France-KLM, the world's largest airline.
A finance ministry spokeswoman said the government had asked two banks, France's Societe General SA and the Netherlands' ABN Amro Holding NV, to handle the sale of the stake, involving about 48 million shares.
The 17.7 per cent stake would be worth about £480m.
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. At present, the state owns 44 per cent of the joint company. After the sale, its stake will fall to about 26 per cent.
The government has indicated it eventually plans to cut its share to about 20 per cent, and Finance Minister Herve Gaymard said the latest share sale came because the government felt the market conditions were right.
The sale was the latest in an ongoing effort by the French government to sell off assets to reduce its debt.
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules hereComments are closed on this article