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Italy units course for ITA Airways sale by finish of subsequent month By Reuters


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© Reuters. FILE PHOTO: A lady walks previous the brand of the brand new state-owned Italian service Italia Trasporto Aereo at Fiumicino airport earlier than a information convention to current the plane’s new fleet, in Rome, Italy, March 1, 2022. REUTERS/Remo Casilli/

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By Giuseppe Fonte

ROME (Reuters) – Italy’s authorities goals to promote state-owned ITA Airways, the successor to Alitalia, by the top of June after setting a deadline for binding gives of May 23, Economy Minister Daniele Franco stated on Tuesday.

Three potential bidders for ITA Airways have had entry to its finance knowledge room, Franco stated addressing parliament over the difficulty.

They are transport group MSC alongside Germany’s Lufthansa, the U.S. Certares fund in cooperation with Delta and Air France, and investor Indigo Partners, Franco added.

Under a authorities decree, Rome plans to privatise ITA by means of a direct sale whereas retaining a minority, non-controlling stake in a primary stage.

MSC in January requested an exclusivity interval of 90 days to iron out particulars of an acquisition, however Rome opted for a market-based process geared toward protecting the door open to different potential suitors.

“The outcome of the negotiations is not a foregone conclusion. We will examine the three offers in a transparent way, there is no decision on our part at present,” Franco stated including a key issue is that the client is no less than 51% owned by a European participant.

Lufthansa is inquisitive about taking a minority stake in ITA, leaving the bulk to MSC, the airline stated in remarks throughout its shareholders assembly on Tuesday.

It added, nevertheless, that the assessment of ITA’s monetary knowledge can be necessary to substantiate this preliminary intention.

If the deal does undergo, Lufthansa goals to construct a detailed industrial cooperation with ITA and expects synergies to make the funding worthwhile in the long run, the service stated.

Under an settlement with the European Union, Rome can inject as much as 1.35 billion euros ($1.42 billion) into the ITA by 2023. A privatisation deal would doubtlessly scale back the monetary help granted by the state, limiting the prices for Italian taxpayers.

Last yr the Treasury paid a primary tranche of 700 million euros and it is because of inject a further 400 million euros this yr, with one other 250 million euros scheduled for subsequent yr.

“The 400 million euro contribution is due and will be disbursed when necessary. ITA does not currently have a cashflow problem,” Franco stated.

($1 = 0.9480 euros)



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