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Saturday October 11, 2008
Reuters
Air One Backer Says Alitalia Sale Open - Report

The head of Air One backer Intesa Sanpaolo told a newspaper the sale of Alitalia was up in the air as a government crisis threatens to delay its takeover by rival bidder Air France-KLM.

"There are still many questions open so we don't think the game is over. Everything still has to be sorted out," Intesa Sanpaolo Chief Executive Corrado Passera told Corriere della Sera newspaper in an interview published on Thursday.

On the current political crisis following the resignation of Romano Prodi as prime minister last week, Passera -- in the past tipped as a possible finance minister in Prodi's administration by newspapers -- said all policymakers should take action.

"It is certainly a key moment which needs all policymakers to make a move," he told the newspaper in an interview which focused on politics.

Talks get underway today to try to construct an interim government for Italy under Senate Speaker Franco Marini that would focus on voting reform ahead of a general election.

Alitalia and Air France-KLM kicked off 8 weeks of exclusive talks on January 15 but without Prodi at the political helm, the sale process might have to be renegotiated, an outgoing minister said on Wednesday.

Alitalia said on Wednesday its finances had worsened so much it was in need of at least EUR750 million euros (USD$1.11 billion) of fresh cash by the middle of this year to survive on its own.

Air One's bid for the state's 49.9 percent of the Italian carrier was snubbed by Prodi's administration in December in favor of Air France-KLM, the world's biggest airline by sales.

The Financial Times said in its Thursday issue that Air One could relaunch its bid and quoted people close to the small domestic carrier saying it was expected to announce new partners.

(Reuters)

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