The long-drawn-out process of Italy's plans to privatize its state-owned ITA Airways appears to be drawing closer to both conclusion and confusion, which is nothing new for the story.
In the latest developments, articles published the same day suggest that a deal with Lufthansa, one of the long-term suitors is near, but without its former partner, MSC, and that MSC is still interested in a deal, and may even be interested in a deal with Lufthansa again.
The Lufthansa/MSC consortium was thought by many to have the inside track earlier this year, but the Italian government picked a rival bid by U.S.-based capital firm Certares, which was allied with KLM/AirFrance and Delta, for exclusive negotiations, which subsequently broke down without a deal.
Recent reports have suggested that Italy's state railway operator, which had once been part of a proposal to rescue Alitalia, ITA's predecessor, would partner with Lufthansa, but that has not materialized. Now the reports have turned to a possible return for shipping group MSC.
The initial selection of the Certares bid over Lufthansa was based on Lufthansa's insistence on full control of the airline's decisions and operations even if the government retained a portion of the stock; it has no interest in being partners with politicians. Italy's new right-wing government may no longer feel as strongly about retaining partial control as it must keep on feeding funds into the airline until it can sell it.
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