News Column

Italy,United Arab Emirates : ALITALIA to pursue a final deal with ETIHAD

June 10, 2014

Troubled Italian airline Alitalia said that it would seek to secure a final deal to make Etihad Airways its top shareholder after examining the Abu Dhabi carrier s turnaround plan.

Alitalia has been charged to continue negotiations for the drafting of a definitive agreement with the UAE company.

The board of directors of Alitalia gives a mandate to close negotiations with Etihad. Italy is again attracting foreign capital.

Etihad has been negotiating to buy up to 49% of the stricken Italian flag carrier, which is facing bankruptcy.

Talks stumbled over Alitalia s heavy debt load and predicted job cuts of between 2,400 and 2,500 Etihad wants as part of the deal.

The issue of debt had still not been discussed after a meeting between the banks and the Italian government. Unions are expected to meet on June 12.

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Source: TendersInfo (India)

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