ADVERTISEMENT

January deadline for Alitalia bid

Interview

Companies interested in acquiring a major stake in Italian airline Alitalia have until 29 January to register their interest, ministers have revealed.

The government is seeking to dilute its existing stake in the struggling carrier from 49% to 19%, and has not ruled out selling all of its shares. Air France-KLM has been linked with a possible deal although the airline remains cautious about any involvement. Officials said bidders must safeguard Alitalia's "national identity". This effectively rules out any job cuts among the firm's 18,000 staff or radical changes to its existing flight schedules. The airline has struggled in the face of tough competition and rising costs, failing to make an operating profit in each of the past five years. In a statement, Italy's Finance Ministry said those wanting to invest in Alitalia would have to demonstrate their financial resources as well as their ability to develop the airline in line with the government's recovery strategy. If the government sells 30% or more of its shares to a single bidder, the purchaser would be obliged to make a full bid for the company. Analysts have suggested that Air France-KLM, which already holds a 2% stake in Alitalia, may be its most natural partner. The airline has said such a deal may be beneficial for both parties but Italian Prime Minister Romano Prodi has expressed concerns that Alitalia may find itself the lesser partner in any such arrangement. (BBC NEWS)

ADVERTISEMENT

Consumer, business confidence reach 2-year high - GKI Analysis

Consumer, business confidence reach 2-year high - GKI

Parl't votes to phase out savings coops integration framewor... Parliament

Parl't votes to phase out savings coops integration framewor...

Roche Szolgáltató appoints P&C business partner lead Appointments

Roche Szolgáltató appoints P&C business partner lead

Budapest airport shuttle bus service expanded City

Budapest airport shuttle bus service expanded

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.