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French airline Air France to buy up Alitalia proposal E-mail
Monday, 17 March 2008
French airline Air France to buy up Alitalia proposa
French airline Air France’s offer to troubled rival Alitalia has been accepted by the Italian company it has been reported. Alitalia has agreed to be bought for the bargain price of 138m euros (£106m; $215m).

The government of Italy holds 49.9% of Alitalia in shares, and last year it tried but failed to sell the airline by auction.


AlitaliaAlitalia has been losing money for the last five years, and has been struggling to find a solution to its problems.

The proposal by Air France to buy Alitalia has a number of problems to be overcome before the deal is finalised and is expected to become an important subject in Italy's general election, which takes place on 13 and 14 April.

Air France are seeking backing for the move from the Italian trade unions.

The Italian government will have to sell its shares in Alitalia before the deal can go through, and Italy's stock market as well as the European Union competition regulators have to give their go ahead for it too.


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Last Updated ( Tuesday, 18 March 2008 )
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