Italy is to sell off national airline Alitalia, the Treasury said on Tuesday, in the most dramatic step yet to end years of losses and failed bailouts.
The state will sell at least 30.1 percent of the shares, automatically forcing whoever buys them to bid for all the airline, which has a stock market value of 1.33 billion euros ($1.77 billion) but is mired in losses.
The stake sale is larger than expected. Last week the government said it would sell about half of its 49.9 percent stake to lure new partners to rescue the group. decision by Prime Minister Romano Prodi's centre-left government to sell Alitalia marks a watershed in the airline's history.
Still, the government said it wants bidders to guarantee jobs, national routes and Alitalia's Italian identity and brand. The Treasury said in a statement the buyer would have contractual obligations including "offering adequate service and territorial coverage; employment levels; and keeping the firm's national identity, logo and brand".
Comments
Comments are closed.