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Alitalia rivals outline bid plans | |
(about 5 hours later) | |
Air France-KLM has said that it has offered to buy troubled Italian airline Alitalia through a share swap. | |
The firm is one of three remaining bidders for the airline, which is 49.9%-owned by the Italian government. | |
Rival suitor Air One has bid one euro cent per share for Alitalia, which it would keep as a listed company. | |
A decision on which bidder will buy the airline is due on Tuesday. The third interested party is a consortium led by Italian lawyer Antonio Baldassarre. | |
Italian Transport Minister Alessandro Bianchi said both the Air France-KLM and Air One plans had merits. | |
No job losses | |
Air France-KLM has not said how many shares will be swapped, but it has promised to inject 750m euros ($1.08bn; £535m) into the airline. | Air France-KLM has not said how many shares will be swapped, but it has promised to inject 750m euros ($1.08bn; £535m) into the airline. |
It has also said that there will not be any additional redundancies added to Alitalia's current restructuring plan. | It has also said that there will not be any additional redundancies added to Alitalia's current restructuring plan. |
The capital injection will be paid for by issuing new shares. | The capital injection will be paid for by issuing new shares. |
The share swap scheme means that the Italian government would be able to retain a stake in the new company. | |
New aircraft | |
Meanwhile AP Holdings, which controls Air One, said it was ready to offer stakes to one or more international players as part of the Alitalia deal. | |
It said the offer of one euro per share would "allow the resources invested to be entirely used to relaunch" Alitalia. | |
Air One has also told Italian media that it plans to buy 130 Airbus aircraft to renew the Alitalia fleet, and that it would pump in 1bn euros. | |
Alitalia is burdened with 1.2bn euros in debt and is losing more than 1m euros a day. | Alitalia is burdened with 1.2bn euros in debt and is losing more than 1m euros a day. |
The Italian government has set a Christmas deadline for choosing a buyer. | The Italian government has set a Christmas deadline for choosing a buyer. |
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