UPDATE 1-Hapag-Lloyd owners to stump up 750 mln eur-source

Fri Jul 10, 2009 10:02am EDT
 
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* TUI alone to provide 325 million eur in support - source

* Hapag-Lloyd seeks 1 bln euro in state aid

* TUI shares down more than 4 percent

(Recasts with information from source)

HANNOVER, July 10 (Reuters) - The shareholders of Germany's Hapag-Lloyd intend to provide 750 million euros ($1.05 billion) of fresh capital to the container shipper, with TUI (TUIGn.DE) injecting 325 million out of that amount, a source familiar with the matter told Reuters on Friday.

The source close to TUI also said Hapag-Lloyd is seeking loans of 300 million euros from German state development bank KfW and another 700 million in government guarantees.

TUI, which owns 43 percent stake in Hapag, said in a statement that its supervisory board had approved in principle providing support to Hapag-Lloyd but gave no details.

This financial support would be based on the number of shares it holds in Hapag, it added.

"Specific proposals will soon be discussed with the shareholders" of Hamburg-based consortium Albert Ballin and decided on at the next TUI supervisory board meeting in early August, it said.

The Albert Ballin group -- which includes the state of Hamburg, regional lender HSH Nordbank [HSH.UL], logistics entrepreneur Klaus-Michael Kuehne and two insurance groups -- owns a 57 percent stake in Hapag-Lloyd.

 

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