Aeroflot pulls out of Alitalia bid

Competition

Russia's Aeroflot has pulled out of the bid for a controlling stake in Italy's ailing state-controlled Alitalia Airlines, Russia's flagship air carrier said in a news release Wednesday.

“After considering all the circumstances linked to Alitalia's privatization, Aeroflot has decided to quit all bidding procedures and withdraw its bid for shares in this company,” the news release said. Aeroflot said its consultants “had not been given access to full information about the commercial and operational status of Alitalia, which could have helped formulate a well-grounded business proposal to restructure the airline” as part of the bid. The other reason, Aeroflot said, is the terms of Alitalia's privatization, which would seriously restrict Aeroflot's options for improving the Italian air carrier.

Alitalia, established in 1947, has been fighting a losing battle against low cost competition and rising fuel prices. The company posted a €3.2 billion ($4.3 billion) loss in 1996-2006, including €380 million ($510 million) in 2006. Last fall, the Italian government decided to privatize the airline. Other bidders for the struggling airline include Italy's UniCredit Bank and AP Holding in conjunction with Intesa Sanpaolo controlled by Italy's AirOne owner Carlo Toto, and MatlinPatterson Global Advisors LLC who rejoined the tender last week. (rian.ru)

ADVERTISEMENT

European e-commerce soars during pandemic - study Analysis

European e-commerce soars during pandemic - study

Lawmakers approve 2022 budget Parliament

Lawmakers approve 2022 budget

Duncan Graham reelected as BCCH president Appointments

Duncan Graham reelected as BCCH president

Budapest launches revamped coupon card for visitors City

Budapest launches revamped coupon card for visitors

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.