The tale of the intended sale of Italy's state-owned ITA Airways shows signs of heading for some kind of long-distance record, with new twists added this last week.
This week's developments included a confirmation by the Economics Minister in Italy's new right-wing government that it intends to go ahead with the sale set in motion by the previous government, and a split in the Lufthansa/MSC partnership that was once again tabbed as the likeliest buyer. In the meantime, the government is putting another €400 million into the carrier to keep it flying.
The partnership re-emerged as a top bidder after negotiations between the government and a group led by U.S. capital firm Certares, allied with AirFrance/KLM and Delta, failed. That group had been granted a short period as the exclusive bidder, although its cash offering was lower than the other group.
Lufthansa had partnered with Italian/Swiss shipping conglomerate MSC in a bid for 80% of the airline, leaving 20% for the government. Although their bid appeared for months to be the leader, the government was not happy with Lufthansa's insistence on having full control of the airline as a business, with Italy being only a part-owner with no participation in management.
With MSC now saying it is no longer interested, Lufthansa has reaffirmed its interest, but only in a "real privatization of the airline." Lufthansa has not said whether its new offer would be for 80% or some other portion.
However, while the Economics Minister told press that "We are open to anybody who wants to participate in the privatization." The airline, created as a successor to the long-running bankruptcy and rescue cycle of the old Alitalia, was always intended to be privatized, as part of an agreement with the EU to allow state financing.
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