Israel’s Finance Ministry has proposed to loan $250 million to El Al airlines, far short of the $400 million the struggling airline had requested.
However, the government could end up nationalizing the airline, as it committed to purchasing any shares not bought by the public in an offering meant to raise the remaining $150 million, Israeli business daily Globes reported.
The Borovitz family currently has a majority stake in the airline and is probably not going to take part in the offering on the Tel Aviv Stock Exchange.
El Al was privatized 15 years ago, and the airline is studying the offer, according to the report. Any agreement reached would also need to be approved by the Cabinet and the Knesset Finance Committee. JNS.ORG