Air France KLM shares slump as Dutch eye up bigger stake

Air France KLM shares slump as Dutch eye up bigger stake
FILE PHOTO: A KLM commercial passenger jet takes off in Colomiers near Toulouse, France, October 19, 2017. REUTERS/Regis Duvignau/File Photo   -  Copyright  Regis Duvignau(Reuters)
By Reuters

PARIS (Reuters) – Shares in Air France KLM fell sharply on Wednesday after the Dutch government said it would take a 14 percent stake in the airline, highlighting tensions between the Netherlands and its French partners in the company.

Air France KLM shares were down by around 9 percent in early session trading.

Late on Tuesday, Dutch Finance Minister Wopke Hoekstra said the Netherlands had taken a 12.7 percent stake for 680 million euros (584 million pounds) and aimed to increase that to about 14 percent, but had not informed France about the move.

(Reporting by Sudip Kar-Gupta; editing by Jason Neely)

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