KLM HAS FILED a lawsuit against Northwest and its directors over the US carrier's move to introduce a "poison pill" preventing a single investor from gaining a controlling stake in Northwest (Flight International, 22-29 November, 1995).
The Dutch carrier alleges that Northwest's action was designed to keep KLM from exercising an option to increase its holding in Northwest from 19% to 24%. The US carrier says that its intent is only to protect Northwest stockholders from hostile take-over.
Northwest claims that, over the past two years, KLM has represented "a creeping control threat". It warns that the Dutch partner could attempt to gain a "disproportionate" share of benefits from the transatlantic alliance if it gained greater control over the US airline.
Source: Flight International
