The Israeli airline will receive loan guarantees and hold a $150 million offering with the State buying shares, if the public does not.

El Al Israel Airlines Ltd. (TASE: ELAL) is set to be nationalized. The board of directors of the financially troubled Israeli flag carrier has agreed to accept the Ministry of Finance plan by which it will receive a 75% guarantee from the State for a $250 million loan and it will hold a $150 million offering on the Tel Aviv Stock Exchange (TASE). Shares that are not bought by the public will be bought by the State and thus the Moses-Borovitz family, which currently has a controlling stake of 38% will see its holding diluted. If the public does not buy enough shares and the State has a controlling stake, it will appoint a trustee the company for a period of three years. Read more at Globes