Shareholder Group To Sue KLM Over Dividend

Investor group VEB said it planned to sue KLM, the Dutch arm of Air France KLM, over dividend payouts VEB considers too small.

"Since 2004, KLM has been paying out a much smaller part of its profits to shareholders than its operational performance justifies," VEB, which represents retail investors, said in a statement on Wednesday.

The suit concerns investors that did not accept Air France's takeover offer in 2004 but remained KLM shareholders, VEB said.

VEB said KLM had paid a dividend of 0.58 euros (USD$0.75) per share for 2007-2008, or 9 percent of profit, while other airlines paid out 50 percent of earnings on average.

A KLM spokeswoman said the company had not received the lawsuit yet, and declined further comment.

Copyright © 2009 Aviation News Release