Sources familiar with the situation said on Thursday that the German government intends to buy a majority stake in Meyer Werft - one of the top cruise ship builders in the world - as part of its support for the company.

Sources said that Chancellor Olaf Scholz, members of the Lower Saxony state government and other officials are expected to deliver this message in a meeting later on Thursday with the staff.

It has orders from Disney in the U.S., and other entertainment groups, but it needs to raise nearly 2.8 billion euro ($3.12 billion), to help fund the construction of luxury liners.

Sources claim that Scholz's family, the government and the state have all agreed on the basic principles and key points.

They said that the federal and state governments wanted to contribute 400 millions euros as equity, obtain bank loans with guaranteed repayments, and temporarily take control of at least 80% or more of the shipyard.

The federal government made no specific comments on the issue and only spoke of ongoing discussions. A spokesman from the Lower Saxony economy ministry declined to comment.

(source: Reuters)