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Sunday May 11, 2008
Reuters
Berlusconi Names Alitalia Rival Bid Parties - Report

Italian opposition leader Silvio Berlusconi, who is fighting against Air France-KLM's bid for Alitalia as part of his election campaign, named oil giant Eni as one of the companies who could form a rival bid.

Berlusconi, who is favored by polls to become prime minister for the third time in April's election, told La Stampa newspaper that retailer Benetton, bank Mediobanca and businessman Salvatore Ligresti were also interested in the airline.

"The Italian consortium exists. The names are diverse... From Ligresti to Benetton. Then of course there is Mediobanca. And there are many others, like Eni," he was quoted as saying on Thursday.

Both Eni and Benetton declined to comment.

Air France-KLM, Alitalia's management and trade unions are trying this week to break a stalemate over how many jobs would be cut at Alitalia, which loses over EUR1 million euros a day and has EUR1.2 billion (USD$1.9 billion) of debt.

Talk of a rival bid, has pushed up shares in Alitalia after they initially fell when the Air France-KLM bid was announced.

Other Italian newspapers also cited Berlusconi as saying he had received interest from other parties for a rival offer, but did not identify them.

Berlusconi has threatened to veto an Air France-KLM takeover if he becomes prime minister, saying the company should stay in Italian hands. The bid was approved by outgoing Prime Minister Romano Prodi's government this month.

Berlusconi had promised a group of "important businessmen" seeking to launch a counter-bid would reveal themselves within days, but wanted three to four weeks to make a formal offer.

"I thought the talks in which the government is involved in would lead to a merger with Air France," Berlusconi said. "I thought a Franco-Italian pole would be created. But this is an acquisition -- that's it -- and I am not for it."

"How can we give our flag carrier to the French who are strong in the same sectors as us... it's crazy. Alitalia is an important subject. The polls illustrate that," he added.

Alitalia's smaller domestic rival Air One, whose offer to buy the carrier was rejected by the Prodi government, has said it is also ready to launch a new offer, but needs three or four weeks to inspect the ailing carrier's books first.

British airport transfers company Terravision has said it would be interested in joining a takeover group.

Political rivals have dismissed Berlusconi's talk of a rival bid as election rhetoric.

Alitalia said on Wednesday it needed more time to decide whether to allow an extension in talks with unions on its takeover by Air France-KLM, just days away from a March 31 deadline.

(Reuters)

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