Alitalia agrees takeover bid from Air France-KLM
Henry Tyler(IBTIMES)- Air France-KLM has announced that the board of Alitalia has unanimously agreed to a takeover bid worth 138 million euros (106 million).
Italian state airline Alitalia has long been in difficulty, making a loss for five consecutive years and currently having a 1.2 billion euro debt. The Italian government which owns 49.9 per cent of Alitalia shares, was also unable to sell the airline in an auction in 2007.
The offer by Air France-KLM values Alitalia shares at 0.10 euros per share, 81 per cent lower than the current value of Alitalia shares. Air France-KLM has said that it plans to pump 1 billion euros into its new acquisition in addition to 608 million euros to buy back Alitalia bonds.
In order to go ahead, the deal must secure support from the Italian trade unions and the Italian government must also agree to sell its shares in the airline. The deal also needs to receive the green light from Italian and EU competition regulators
- 1 HK typhoon alert No.1 issued
- 2 HSBC reports 1H fall in profit 29 percent
- 3 Bryant scores 19, helps US beat Russia in tuneup
- 4 Actor Morgan Freeman is injured in car accident
- 5 Jolie-Pitt baby twins photos online
- 6 Christina Applegate treated for breast cancer
- 7 Paris Hilton's mom takes offense at McCain's humor
|
- 1 Gene-testing startup's study responds to critics
- 2 Power supply regulations to be updated
- 3 Financial turmoil, weaker sales batter GM shares
- 4 States cut spending, put projects on hold
- 5 AP IMPACT: GPS could save airlines time and fuel
- 6 Oil plummets to $82 on global slowdown fears
- 7 Lisited company U-right intrenational liquidation
|
|
