UPDATE 1-Italy says EU may allow Alitalia aid if privatised
June 3rd, 2008 | by admin |(Adds details, background)
LUXEMBOURG, June 3 (Reuters) - The European Union mayconsider allowing aid for troubled Alitalia (AZPIa.MI: Quote, Profile, Research) if it isaimed at privatising the Italian carrier, Italy’s EconomyMinister Giulio Tremonti said on Tuesday.
“Aid aimed at market operations such as privatisation isdifferent,” Tremonti said at a press conference after a meetingof European Union finance ministers in Luxembourg.
The Italian government decided in April to give Alitalia aloan to keep it flying until a new buyer is found after AirFrance-KLM (AIRF.PA: Quote, Profile, Research) pulled out of a deal.
Alitalia received the badly-needed lifeline when thegovernment converted a 300-million euro emergency loan to theairline into company capital. The European Commission isscrutinising it to see whether it violates rules barring stateaid.
Tremonti has said the aid was the only way to prevent thenational carrier from going bankrupt or being put under specialadministration.
Italy launched its third attempt in 18 months to find abuyer for Alitalia on Friday, naming the country’s biggestretail bank, Intesa Sanpaolo (ISP.MI: Quote, Profile, Research), as adviser and issuingsecretive new rules in the hope of speeding up the ailingairline’s sale.
Under the new rules, there will be no auction and thegovernment will not be obliged to disclose information about thesale until an offer has been made, unlike the normal requirementfor listed companies, Tremonti said last Friday. (Reporting by Alessia Pe; Editing by David Cowell)
