Italian Government Seeks Alitalia Buyers
Posted on: Friday, 29 December 2006, 18:00 CST
The Italian government Friday invited bids to purchase as much as 49.9 percent of ailing Alitalia, the country's flagship carrier.
Italy's Economy Ministry said potential buyers would have to bid for 30.1 to 49.9 percent of the company, with a stipulation the winning buyer or buyers would then bid for the whole company.
The bidding deadline ends Jan. 29, the ministry said in a statement on its Web site.
Alitalia shares closed Friday on the Milan Stock Exchange at $1.39, up 8 cents, or 6.15 percent.
Alitalia, which has not made an operating profit since 1998, expects to lose more than a quarter-billion dollars this year.
Air France-KLM, Europe's biggest airline, has said it has had talks with Alitalia that could evolve into formal discussions and a takeover. But it said the Italian carrier must first be privately owned, have an improved financial position and agree with the French-Dutch carrier on a business strategy.
The Italian government owns 49.9 percent of Alitalia and has agreed to cede management control.
Meridiana, Italy's third largest airline, also emerged as a potential buyer this week.
Source: United Press International
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