=20 ---------------------------------------------------------------------- This article was sent to you by someone who found it on SFGate. The original article can be found on SFGate.com here: http://www.sfgate.com/cgi-bin/article.cgi?file=3D/news/archive/2004/05/04/f= inancial0751EDT0475.DTL --------------------------------------------------------------------- Tuesday, May 4, 2004 (AP) Air France takes control of KLM in merger share swap (05-04) 05:16 PDT PARIS (AP) -- 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 n= ew 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. Air France and KLM agreed to merge in September, creating a global airli= ne with combined revenue of about $23.5 billion. The parent of American Airlines had been the largest airline company and had revenue of $17.4 billion last year. Shares in the new company will begin trading Wednesday in Paris, Amsterd= am and New York, the statement said. Air France shares were 2 percent higher at $17.85 in midmorning Paris trading, while KLM shares were up 3.3 percent at $20.74 in Amsterdam. ---------------------------------------------------------------------- Copyright 2004 AP