World Economy

Apr 23, 2008

Belusconi promises a solution for Alitalia of Italy in five weeks

Belusconi promises a solution for Alitalia of Italy in five weeks
The future head of the Italian government Silvio Berlusconi has promised to the radio Wednesday that Italian investors submit a bid for takeover of Alitalia by five weeks.

"After 4 to 5 weeks of due diligence + + (examination of the accounts, Ed), a consortium of investors may make a firm offer," said Berlusconi on Radio Nuova Spazio. If he considers that "a painful staff reductions will be unfortunately necessary," he promised assistance from the state to those who lose their jobs.

Silvio Berlusconi had assured throughout the election campaign he had a group of Italian entrepreneurs willing to hand the portfolio to save Alitalia, but the project has not yet materialized.

Silvio Berlusconi rejected its campaign for the supply of Air France-KLM before making a small opening under conditions to the Franco-Dutch company immediately after the elections.

After the withdrawal of the offer by Air France KLM Monday, Silvio Berlusconi said on radio that the break with the Franco-Dutch company was due "primarily to veto unions" rather than "political interference as wanted to believe. " He was responding to Romano Prodi who spoke Tuesday of "excessive interference of political parties" to explain the withdrawal of the French offer.

The withdrawal could precipitate the company toward bankruptcy. The Italian government decided Tuesday night to grant a credit relay 300 million euros to Alitalia. The outgoing prime minister said Romano Prodi that the amount of the loan had been revised upwards by his successor Silvio Berlusconi, who wanted to give time to discuss ways of rescuing the company. The loan will be repaid before the end of the year.

The company, which lost more than 1 million per day, have said 170 million euros in its funds. However, the loan-relay is likely to face the European Commission.

It could reclassify such a loan to public aid. Last week, Brussels has warned "Alitalia having benefited from the last payment of state aid in 2001 for its restructuring," it could "benefit again before 2011".

Silvio Berlusconi also referred to a resumption of contacts with the Russian company Aeroflot, which had withdrawn in November of the race for the privatisation of Alitalia.

Aeroflot said that he was indeed "pending instructions from President Vladimir Putin" who, during a visit to Silvio Berlusconi last week, had discussed a possible partnership with his company Alitalia. "The Aeroflot decisions are dictated by the interests of its investors and pragmatism," tempered the Russian company.

by erectusplus at 9:59 AM |