Air Transport World

KLM.(to be acquired by Air France)(Brief Article)

After a lengthy search for a European partner, KLM announced in September it had agreed to a takeover by Air France. European and US authorities cleared the first cross-border merger of two European majors and on April 5 Air France launched its exchange offer for all of KLM's outstanding shares, which ended May 3. The share exchange valued the Dutch airline at 16.74 [euro] per share or 784 million [euro] ($914 million). "There is a strong rationale supporting this alliance," Chief Executive Leo van Wijk said, stressing that the carriers' networks complement each other more than they compete (see Air France).

The Dutch government was granted guarantees for an eight-year period encompassing the maintenance of Schiphol Airport as a hub and KLM for a five-year period covering the retention of its identity and brand as well as its human resources. …

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