No menu items!

The offer supported by Air France preferred that of Lufthansa for the acquisition of ITA (ex-Alitalia)

Share This Post

- Advertisement -

The Certares fund associated with Air France and Delta would have been retained by the Italian Ministry of Economy to gain control of 56% of the Italian airline.

The Italian Ministry of Economy announced on Wednesday that it had accepted the offer of the American investment fund Certares, associated with Air France-KLM and Delta Air Lines, for the acquisition of the public company ITA Airways with a view to opening exclusive flight negotiations.

- Advertisement -

This surprise announcement is a setback for Italian-Swiss shipowner MSC and its German ally Lufthansa, which have so far been considered favorites in the race to buy Alitalia’s successor.

The winning bid “was judged the most in line with the objectives set” by the state, which owns 100% of the company, the ministry said in a press release, without disclosing the amount of the bid.

- Advertisement -

According to the newspaper Il Messaggero, the Certares fund, specialized in tourism, has proposed the acquisition of almost 56% of ITA for around 600 million euros. The Italian State would thus maintain a 44% stake and would have two positions out of the five that will be in the future board of directors of the company.

Air France-KLM limited to 10% stake

MSC and Lufthansa had proposed at the end of August to pay 850 million euros for 80% of ITA, an offer revised downwards compared to a previous one of 1,300 to 1,400 million euros made in January, due to the deterioration of the air market expected after summer.

MSC and Lufthansa were targeting shares of 60% and 20% respectively, according to a source familiar with the matter. Air France-KLM is, together with the American Delta Air Lines, the commercial partner of Certares.

The Franco-Dutch group had already had plans for Alitalia in the past. In 2009, it acquired a 25% stake in the Italian company before gradually divesting it starting in 2013.

Unlike Lufthansa, Air France-KLM has its hands tied by the conditions requested by the European Commission in exchange for public aid received to overcome the Covid-19 crisis, which prevent it from taking a stake of more than 10% in a industry company.

The announcement of the opening of exclusive negotiations comes despite a warning issued in early August by Giorgia Meloni, president of the far-right Fratelli Italia party, who had urged outgoing Prime Minister Mario Draghi not to rush a decision.

As of the legislative elections scheduled for September 25, “everything can change and the reactivation of our national airline” will be the responsibility “of whoever governs,” warned Meloni, who aspires to the head of the Italian government.

Author: Frederic Bianchi with AFP
Source: BFM TV

- Advertisement -

Related Posts