Air France-KLM in "advanced" talks to buy Alitalia - report

ROME Sun Jan 6, 2013 5:16pm IST

An Alitalia jet takes off over another three parked at Fiumicino airport in Rome December 23, 2008. REUTERS/Chris Helgren/Files

An Alitalia jet takes off over another three parked at Fiumicino airport in Rome December 23, 2008.

Credit: Reuters/Chris Helgren/Files

Stocks

   

ROME (Reuters) - Franco-Dutch carrier Air France-KLM (AIRF.PA) is in "advanced" talks to take control of Italy's flagship airline Alitalia by the summer, Rome's Messaggero newspaper reported on Sunday without citing its sources.

Alitalia is owned by CAI, a consortium of investors that bought the then-bankrupt airline in 2008. CAI is already partly owned by Air France-KLM. Alitalia's shareholders can exercise options to trade their shares when a lock-up period ends on January 12.

In May, Air France said it would probably wait until at least 2014 before using its option to take control of Alitalia, in which it has held 25 percent since January 2009.

Air France-KLM has offered shareholders a 20 percent premium on what they paid for the airline in 2008, the newspaper said, probably in Air France-KLM shares. CAI paid a little more than 1 billion euros to take over Alitalia five years ago.

Alitalia and Air France-KLM officials were not immediately available for comment.

Alitalia returned to profit in the third quarter after reporting losses in the first half, booking a net profit of 27 million euros, down from 70 million euros a year before.

Net debt rose to 923 million euros at the end of September, up by 61 million euros from the end of June. (Reporting by Steve Scherer; Editing by Helen Massy-Beresford)

Economic Pulse

REUTERS SHOWCASE

Banking Sector

Banking Sector

India's laggard state lenders face tough sell on capital raising plan  Full Article 

Falling Oil Prices

Falling Oil Prices

Saudis signal no push for oil cut as market to "stabilise itself"  Full Article 

Raising Stake

Raising Stake

Nippon Life to raise stake in Reliance Capital fund unit  Full Article 

Sterilisation Camps

Sterilisation Camps

Sterilisation targets remain in all but name, critics say  Full Article 

Share Buyback

Share Buyback

Samsung Electronics to buy back $2 billion in shares  Full Article 

Bird Flu Scare

Bird Flu Scare

India orders culling after bird flu outbreaks in Kerala.  Full Article 

Microsoft in China

Microsoft in China

Microsoft to pay China $140 million for 'tax evasion'   Full Article 

Flashback: 26/11

Flashback: 26/11

The three-day attack in November 2008 left 166 dead.  Slideshow 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage