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March 17, 2008 |
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ALITALIA SPA: State Council Rules Exclusive Talks Legitimate Italy's State Council, the highest administrative appeals court in the country, has dismissed an appeal by AirOne S.p.A. to reverse a ruling by the Italian Regional Administration Court of Lazio that confirmed the legitimacy of the exclusive talks to sell the Italian government's 49.9% stake in Alitalia S.p.A. to Air France-KLM S.A., Reuters reports. The Council ruled that the selection process for Alitalia's potential buyer was conducted "in an adequate way, guaranteeing the proper competition between the potential buyers." The Lazio court rejected an appeal filed by AirOne to its Feb. 20, 2008 decision that rejected its petition to declare null and void a Dec. 28, 2007 decision of Italy's Ministry of Economy and Finance to commence exclusive talks with Air France. As reported in the TCR-Europe on Jan. 17, 2008, Alitalia and Italy commenced exclusive sale talks with Air France-KLM. The carriers have until mid-March to reach an agreement, which would be approved by the government. Air France said it will seek approval from the new Italian government chosen following the April 13-14, 2008, snap elections, for any agreement to acquire Italy's stake in Alitalia. Air France managing director Pierre Henri Gourgeon that the exclusive talks may go beyond the April elections due to various procedural steps, Radiocor relates. AirOne said it would present a binding offer once it wins its appeal, adding that its offer would be financially backed by Intesa Sanpaolo S.p.A., Goldman Sachs Group Inc., Morgan Stanley and Nomura Holdings Plc. Air France's Board of Directors has authorized the submission on March 14, 2008, an offer for Italy's stake in Alitalia, subject to suspensive conditions, including notably the commitment of the trade unions. About Alitalia Headquartered in Rome, Italy, Alitalia S.p.A. -- http://www.alitalia.it/ -- provides air travel services for passengers and air transport of cargo on national, international and inter-continental routes. The Italian government owns 49.9% of Alitalia. The company has operations in Argentina. Despite a EUR1.4 billion state-backed restructuring in 1997, Alitalia posted net losses of EUR256 million and EUR907 million in 2000 and 2001 respectively. Alitalia posted EUR93 million in net profits in 2002 after a EUR1.4 billion capital injection. The carrier booked annual net losses of EUR520 million in 2003, EUR813 million in 2004, EUR168 million in 2005, and EUR625.6 million in 2006. Italian Transport Minister Alessandro Bianchi has warned that Alitalia may file for bankruptcy if the current attempt to sell the government's 49.9% stake fails. |
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