INVESTORS, led by Air France-KLM and delta Air Lines is expected to buy Italy's fledgling state-controlled airline, reports Bloomberg.
After being selected over a rival bid from a team that included Lufthansa, the US- European bidders will start exclusive talks with the Italian Finance Ministry.
The two bidding groups had spent months jockeying for position in the contest for the airline that emerged from the ashes of former flag carrier Alitalia.
'After exclusive talks, a binding agreement will be signed only if the outcome will be fully satisfactory for the public shareholder,' the ministry said.
The outcome will also be impacted the next national elections - most likely led by a right-wing coalition based on recent polls - could block the carrier's privatisation.
Under the US-European group's offer terms, the state would hold 40 per cent of ITA's shares and could control two of the company's five board seats, with some level of veto power over management nominations, newspapers including Corriere della Sera have reported.
That structure is widely seen as offering a better chance of appealing to a future rightist government, though official details haven't been announced on either bid.
'Apparently, a path is now being chosen that allows for more state influence and does not provide for a complete privatisation of ITA,' said Lufthansa.
Air France-KLM has its hands tied on the acquisition front until it pays back billions of euros in state funds used to ensure its survival during the height of the Covid crisis.
Alitalia, a serial loss-maker, was only able to continue flying thanks to state aid. The Italian government reformed the airline under the ITA name in 2020, ceding many of Alitalia's assets while retaining much of its debt.
The sale of ITA 'won't be left to the next government, we have to do our duty,' said Prime Minister Mario Draghi, who's serving in a caretaker role until the September 25 election.
SeaNews Turkey
After being selected over a rival bid from a team that included Lufthansa, the US- European bidders will start exclusive talks with the Italian Finance Ministry.
The two bidding groups had spent months jockeying for position in the contest for the airline that emerged from the ashes of former flag carrier Alitalia.
'After exclusive talks, a binding agreement will be signed only if the outcome will be fully satisfactory for the public shareholder,' the ministry said.
The outcome will also be impacted the next national elections - most likely led by a right-wing coalition based on recent polls - could block the carrier's privatisation.
Under the US-European group's offer terms, the state would hold 40 per cent of ITA's shares and could control two of the company's five board seats, with some level of veto power over management nominations, newspapers including Corriere della Sera have reported.
That structure is widely seen as offering a better chance of appealing to a future rightist government, though official details haven't been announced on either bid.
'Apparently, a path is now being chosen that allows for more state influence and does not provide for a complete privatisation of ITA,' said Lufthansa.
Air France-KLM has its hands tied on the acquisition front until it pays back billions of euros in state funds used to ensure its survival during the height of the Covid crisis.
Alitalia, a serial loss-maker, was only able to continue flying thanks to state aid. The Italian government reformed the airline under the ITA name in 2020, ceding many of Alitalia's assets while retaining much of its debt.
The sale of ITA 'won't be left to the next government, we have to do our duty,' said Prime Minister Mario Draghi, who's serving in a caretaker role until the September 25 election.
SeaNews Turkey
