🧐 ProPicks AI October update is out now! See which stocks made the listPick Stocks with AI

Alitalia did not consider offers from investors 'appropriate' -report

Published 04/08/2018, 01:08 am
Updated 04/08/2018, 01:10 am
© Reuters.  Alitalia did not consider offers from investors 'appropriate' -report
EZJ
-
LHAG
-
WIZZ
-

MILAN, Aug 3 (Reuters) - The three offers that Alitalia received during a sales process kicked off by Italy's previous government were not appropriate for the Italian carrier, the state-appointed commissioners who have run the airline since last year said in a report on Friday.

Uncertainty now looms over Alitalia, once a symbol of Italy's buoyant post-war economy and national prestige, after the search for new investors was put on hold by the country's new government.

The commissioners' report did not say who had made the three offers but added that Alitalia did not enter exclusive negotiations with any of the potential buyers because they had all lacked commitment and essential elements such as bid bonds, contractual documents and industrial plans.

EasyJet EZJ.L , Lufthansa LHAG.DE and Wizz Air WIZZ.L all submitted expressions of interest after Alitalia was put under special administration in May last year for the second time in a decade in the face of increased competition from low-cost carriers and high speed trains.

Italy's new transport minister said last month that 51 percent of Alitalia was to be kept in Italian hands "but with a strong investor next to it," without giving further details on how the State would intervene and whether a sale would go ahead.

Political uncertainty around Italy's national elections and the subsequent change of government had meant interested investors taking a conservative approach, industry sources said.

Alitalia's commissioners have been putting the carrier's books in order and first-half revenues rose 4.3 percent year-on-year to 1.4 billion euros. Costs fell 8.6 percent to 1.5 billion euros, despite those linked to fuel rising by almost 22 percent.

The airline also cut its core loss to 124 million euros.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.