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Lucerne government debates potential reduction of stake in Luzerner Kantonalbank
Luzerner Kantonalbank"s share price has underperformed compared to other cantonal banks, prompting political discussions about the Canton of Lucerne potentially reducing its stake from 61.5% to a minimum of 51%. Factors contributing to the decline include a delayed capital increase and a low free float of around 40%. While the government currently plans to maintain its stake, a revision of the ownership strategy is expected by summer 2025.
political scrutiny intensifies over luzerner kantonalbank share price decline
Luzerner Kantonalbank's share price has plummeted from CHF 105.40 in 2018 to CHF 62.70, raising concerns among middle-class politicians. FDP cantonal councillor Thomas Meier has questioned the cantonal government about the bank's dividend policy and the lack of government representation on its Board of Directors, despite the canton holding a significant stake.
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