—“France is ready to use the ultimate weapon to protect its biggest companies from the market turmoil set in motion by the coronavirus: nationalization.”—

 

What does nationalization mean?

The state ‘buys’ the corporation (its shares), directly from the company (not existing investors), at a discount (30%-50%), at market prices, vacates all non-vendor debt (all borrowing), restoring fiscal health, and appoints a receiver, and a board member, with veto power over dispersals. The state may also invest additional funds for strategic purposes. Especially research and development, or modernization.