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Non-Tech : AKH...the NEW Air France/KLM -- Ignore unavailable to you. Want to Upgrade?

To: Skywatcher who wrote (42)	12/1/2006 4:50:57 PM
From: Skywatcher	Respond to of 72

Italy plans to sell half of Alitalia stake Government owns 49.9 percent of troubled airline; to put 25 percent on block. December 1 2006: 4:10 PM EST ROME (Reuters) -- Italy plans to put half of its controlling stake in Alitalia up for sale early next year, opening the way for new owners to try to rescue the loss-making airline, officials said. A cabinet meeting agreed Friday that the state, which owns 49.9 percent of the flag airline, would put up for sale about a 25 percent stake. DaimlerChrysler is bringing a changed Smart Car to North America. CBC's David Common reports. (November 25) Play video Alitalia (Charts) shares closed up 11.6 percent at € 0.95, which would value the stake at about € 330 million ($436.9 million), according to data from bourse regulator Consob. "The selection of potential buyers will take into account [bidders] profiles that are of general interest, [such as] employment levels and adequate provision of services and territorial coverage," said a statement from Prime Minister Romano Prodi's office. Transport Minister Alessandro Bianchi said the sale could be completed early next year. One government source said there was no obstacle to the government eventually selling all its shares. Alitalia, which is forecast to lose more than € 200 million ($264 million) this year, has been in turmoil for more than 10 years and is on its third chief executive since 2000. Infrastructure Minister Antonio Di Pietro said the stake sale would open the "exit doors" for Alitalia's "failed" managers - the latest sign that government-appointed Chief Executive Giancarlo Cimoli's days might be numbered. European Union market rules say that the government cannot keep bailing the airline out. The previous, center-right government diluted its majority stake in Alitalia last year through a €1 billion capital increase after an EU request. Nationalist Sentiment Speculation regarding Alitalia's future has centered recently on a possible tie-up with Air France KLM (up $0.52 to $40.50, Charts), which said last week it was in exploratory, but not formal, talks with the Italian airline about a possible merger. Air France KLM made no comment. A spokeswoman for German airline Lufthansa (up $0.18 to $25.11, Charts) said it had no plans for any stake purchases, without referring exclusively to Alitalia. Prodi's center-left government has promised to outline its Alitalia rescue plan by January. "Alitalia cannot do without the entry of capital from new industrial and financial players," it said in the statement. Despite the losses and regular strike chaos - more flights were disrupted by labor unrest on Friday - Alitalia still evokes nationalist sentiment and is seen as a strategic asset. But Cimoli said this week there was no point defending its Italian identity, sparking outrage among some politicians. "There is no sense today in protecting the so-called 'Italianness' of the airline. Competition is merciless and the answer can only be the creation of a strong European group," Cimoli wrote in a business newspaper. The mayors of Rome and Milan jointly wrote a letter to a paper this week calling for Italians to work together to sort out the airline. One analyst warned that Alitalia might not have much time: "This (sell-off) will allow Alitalia to search for fresh capital and hopefully relaunch itself. I think it may be the only solution possible," he said, asking not to be named. "Something has to be done, and done quickly."