US funds suspected of speculation in Alitalia bid

16 Dec, 2007

Italian prosecutors have opened a preliminary investigation into US investment funds Evergreen and Quantum for speculation in the bidding for Alitalia, the ANSA news agency reported.
The probe was prompted by a drop in Alitalia's share price after Asian giant Singapore Airlines (SIA) on Friday denied a report that it had submitted a bid for the Italian flag carrier along with Evergreen and Quantum. Alitalia president Maurizio Prato reportedly received a letter expressing the consortium's interest in acquiring the loss-making airline.
Alitalia said Thursday it would postpone until next Tuesday its decision on which bidder it prefers. The choice of the partner was initially expected Thursday but reports said the Italian government was split on whether to sell Alitalia to Air France-KLM or to AP Holding, which operates Italy's second biggest airline, Air One.
The new investigation may merge with a probe already opened into Air One's actions, ANSA said. Air One took part in a failed government auction earlier this year. The government owns 49.9 percent of Alitalia and is seeking to sell a controlling stake to a partner that can relaunch the ailing airline.

Read Comments