Germany has thrown Lufthansa a €9bn (US$9.8B) lifeline, agreeing a bailout that gives Berlin a veto in the event of a hostile bid for the airline.

The largest German corporate rescue since the coronavirus crisis struck will result in the government taking a 20% stake, which could rise to 25% plus one share in the event of a takeover attempt, as it seeks to protect thousands of jobs.

Lufthansa has been locked in talks with Berlin for weeks over aid it needs to survive a protracted travel slump, with the airline wrangling over how much control to yield in return for financial support.

Germany’s central government has spent decades offloading stakes in companies but remains a large shareholder in former state monopolies such as Deutsche Post and Deutsche Telekom. Berlin also still has a 15% holding in Commerzbank, which it took on during the global financial crisis.

Other airlines including Franco-Dutch Air France-KLM and US carriers American Airlines, United Airlines and Delta Air Lines have also sought state aid after the coronavirus reduced global travel.