Report: Air France-KLM no bid on Alitalia
PARIS, Jan. 23 (UPI) -- Air France-KLM does not plan to bid on struggling the Italian airline Alitalia, a French newspaper reports.
The French-Dutch airline considers the probable $1.9 billion pricetag for Alitalia too high and the conditions too limiting, La Tribune of Paris reports.
Prospective buyers must agree to maintain the Alitalia brand, the cities the airline serves and the number of employees, the Italian government says. Italy is accepting preliminary offers for no less than 30.1 percent of Alitalia until Monday.
La Tribune says the decision not to present a bid was made during a board meeting Wednesday, when Air France-KLM Chairman Jean-Cyril Spinetta said he would leave the Alitalia board.
Air France-KLM might change its mind if another leading airline, such as Lufthansa, made a bid, La Tribune says.
Separately, Alitalia would not confirm reports it would report a loss of more than $518 million for 2006.
Alitalia shares closed down one cent or 0.67 percent at $1.34 on the Milan Stock Exchange. Air France-KLM shares were down 20 cents or 0.44 percent to $44.75 on the New York Stock Exchange. // Copyright 2007 by United Press International
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