P.M. BRIEFING : Checchi Agrees to Reduce KLM’s Stake in Northwest to $175 Million
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MINNEAPOLIS — Los Angeles investor Alfred Checchi has agreed to cut KLM Royal Dutch Airlines’ stake in the Northwest Airlines buyout to ease government concerns about foreign airline influence over Northwest, it was reported today.
The Minneapolis-based Northwest has agreed to a Department of Transportation demand to reduce a $400-million investment by KLM and to remove KLM from the board of NWA Inc., the airline’s parent company, the Wall Street Journal reported, quoting an unidentified source.
According to the Journal, Checchi has agreed to cut the KLM stake by $225 million, to $175 million.
The Star Tribune in Minneapolis, quoting unidentified government sources, reported today that Transportation Secretary Samuel K. Skinner has determined that KLM’s existing $400-million equity stake exceeds federal regulations, which restrict foreign ownership to 25% of a U.S. carrier.
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