GO
Loading...

Italy Government Studying Options if Alitalia Sale Fails: Report

AFX
Wednesday, 4 Jul 2007 | 6:52 AM ET

The Italian government is studying alternatives regarding the future of the troubled airline Alitalia if the privatization of the company fails, the daily Il Sole 24 Ore said without giving a source.

The government is seeking to sell at least a 39.9% stake in the airline. AP Holding, the owner of the airline Air One, and the investment fund MatlinPatterson are potential bidders. The deadline to present binding offers is July 12.

Prime Minister Romano Prodi and economy minister Tommaso Padoa-Schioppa are wary about the solidity of AP Holding's bid, while MatlinPatterson could seek to make a joint offer with other investors, according to the daily.

If the privatization were to fail, Prodi could be tempted to appoint an administrator to liquidate Alitalia and sell the business piecemeal, it added.

The government could also seek to reopen alliance talks, starting with Alitalia's industrial partner Air France-KLM, the newspaper said.

Featured

Contact U.S. News

  • CNBC NEWSLETTERS

    Get the best of CNBC in your inbox

    › Learn More

Don't Miss

U.S. Video

  • CNBC's David Faber and Carl Icahn, chairman, Icahn Enterprises, discuss corporate boards, a dysfunctional system, his impact as an activist investor and why what he does is important, as well as the use of poison pills to fend off activists. He also finds himself in the unusual position of defending Bill Ackman's recent efforts to partner with Valeant and acquire Allergan.

  • Discussing new technology in the Permian, growing market in North America, and higher earnings, with Dave Lesar, Halliburton chairman, president and CEO.

  • Paul Raines, GameStop CEO, discusses how its leadership in digital sales, market share, and ability to drive loyalty with rewards propels consumers to stay with the gaming store.