Italian choice

Italy has chosen Delta Air Lines and Air France/KLM as the preferred bid to take over national carrier ITA Airways.

The airlines will enter exclusive talks for the takeover, with lead investor, Certares.

It was chosen ahead of MSC Group, partnering German airline Lufthansa, which were considered front-runners.

The Delta Air Lines/Air France bid “was deemed to be the most in line with the objectives set”, the Italian economy ministry said.

“At the end of the exclusive negotiations, binding agreements will only be signed if their content is fully satisfactory for the public shareholder”, the ministry added.

Certares has reportedly proposed to buy almost 56% for $599m.

Italy would keep a 44% stake and have representation on a future ITA board.

MSC and Lufthansa had filed a bid to buy 80% of ITA Airways.

“From our point of view, our joint offer with MSC was the better solution for ITA”, Lufthansa said in response.

“Evidently, a path is now being chosen that allows more state influence and does not envisage the complete privatisation of ITA”.

Air France/KLM previously had a 25% stake in Alitalia.

www.ita-airways.com

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