Au revoir, Alitalia
Financial Times
23 Aprile 2008
Air France-KLM has finally said au revoir to Alitalia. In so doing, it has left the skies clear for Silvio Berlusconi's new government to orchestrate an Italian-led salvage of the country's beleaguered flag-carrier.
What are the chances of success for the veteran media-tycoon-turned-prime minister? Slim, most would say, especially if the outgoing government drags its heels in allowing potential Italian investors to conduct due diligence. Until now, Air France had exclusivity in the negotiations and Alitalia's books were closed to rivals.
Anybody with any sense will want to take a good look at these books before even considering making a potential rescue proposal. So if the outgoing administration fails to move quickly and allow prospective candidates to conduct due diligence, the chances are there will be no option but to put the company into receivership.
For the new government, it would clearly be preferable not to see the airline land into administration. Mr Berlusconi's top consultant Bruno Ermolli is working overtime to find a suitor other than Air France. However, arm-twisting will get him nowhere if his potential investors cannot scrutinise the Alitalia books.
Source > Financial Times
