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Question: Lufthansa's market cap is less than 5Bn, why is the German government not buying it for that amount, bailing it, then (hopefully) selling it in a deca
by ArmandGrillet 6y ago
Question: Lufthansa's market cap is less than 5Bn, why is the German government not buying it for that amount, bailing it, then (hopefully) selling it in a decade when the situation improves?
France is bailing Air France, Germany is bailing Lufthansa, what does it mean for a company like EasyJet? Will it get bailed too or just crash due to governments helping some companies but not others?
- fulafel 6y agoAfter buying, they'd just have ownership but would still have to pump in just as much additional money. (Also you can't generally succeed in buying a company at its market cap value off the stock market becausenthe stock price goes up witj the demand)
- patall 6y agoThe second is actually why noone really knows if this will go through. EU law may prevent most kinds of subsidies for national carriers.
- odiroot 6y agoMarket cap tells you only the story of the equity. It doesn't include the liabilities.