http://news.yahoo.com/news?tmpl=story&u=/ap/20040504/ap_on_bi_ge/france_air_france_klm_5Air France Takes Control of KLM in Merger 38 minutes ago Add Business - AP to My Yahoo!
By LAURENCE FROST, AP Business Writer
PARIS - Air France has acquired control of KLM Royal Dutch, the two carriers announced Tuesday, cementing their agreed merger that would create the world's largest airline company.
In a joint statement, the French and Dutch airlines said they had cleared the last hurdle in the merger they agreed to last year to create Air France-KLM.
KLM shareholders tendered almost 42 million shares representing 89.2 percent of the airline's capital in a share swap offer that closed Monday evening, the statement said.
Under the terms of the offer, Air France is to issue nearly 46 million new shares to the KLM shareholders who have agreed to exchange their stock — reducing the French government's stake in the national carrier to under 45 percent from around 54 percent.
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