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Alitalia - What Now?

French airline Air France-KLM’s Alitalia takeover bid breaks down

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Apr 03, 2008

The Alitalia takeover bid by French airline Air France-KLM broke down and the Italian company are now holding an emergency board meeting.

Alitalia chairman Maurizio Prato has resigned after the talks between Alitalia's unions and Air France-KLM management fell apart.

Maurizio Prato told the unions that Alitalia could easily go bankrupt if they did not accept the Air France deal and he is reported to have said: "This company is cursed: only an exorcist can save it."

The government of Italy has been trying for over a year to sell its 49.9% share in Alitalia and says that besides Air France-KLM there were no more bidders interested in taking it on.

On Wednesday, Italian Economy Minister Tommaso Padoa-Schioppa claimed that now the Air France-KLM offer is no more all that can be done is to put Alitalia under emergency administration.

Minister Tommaso Padoa-Schioppa added that a 300m euro ($470m; £236m) bridging loan to Alitalia would no longer be an option unless the Air France-KLM deal had been agreed on.

French airline Air France-KLM’s Alitalia takeover bid breaks down
Maurizio Prato

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