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Five way race in Alitalia takeover – 19 Feb 2007

Alitalia has attracted five takeover bids as the Italian government seeks to privatise the loss-making carrier by June.

But there are fears a sale could trigger a spate of strikes against threatened job losses. Unions at Alitalia have already called two strikes since the process of privatisation began.

The bidders are primarily banks and finance houses, including a consortium linked to Alitalia rival Air One, which holds 25% of Italy’s domestic market and flies between London City and 11 Italian destinations.

US finance group Texas Pacific, part of the consortium that bought Qantas in December, is also among the bidders.

Air France-KLM holds a small stake in Alitalia and has indicated a long-term desire to take over the carrier, but not until the Italian flag carrier has been restructured and is profitable. It is not among the bidders.

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