Alitalia shares made strong gains on Tuesday after the Rothschild Bank confirmed it was putting together a consortium of Italian and international investors to make a bid for the over 30% stake in the carrier the Italian government has put up for sale.
Rothschild became the latest high-powered investor to express an interest in the airline after Milanese businessman Paolo Alazraki and the Aga Khan.
The Khan already controls Italian regional carrier Meridiana, which recently acquired the low-budget carrier Eurofly, and there are reports in the press that he may be teaming up with Air France, Alitalia's partner in the Sky Team alliance.
Alazraki and his partners are currently one step ahead of the others and on Tuesday met with Alitalia unions to illustrate his plan and hear their demands.
Alazraki, the head of the Real Dreams investment fund, has called for an end to speculation over other possible bidders and asked stock market regulator Consob to intervene if interested parties did not declare their intention one way or the other.
Another regional carrier, AirOne is also reported to be preparing a bid as is financier Carlo De Benedetti, through the corporate bail-out fund M&C he helped set up together with a group of leading Italian businessmen, including footwear tycoon Andrea Della Valle.
The Treasury announced last month that it would sell no less than 30.1% of Alitalia and thus sent a signal that it may sell its full 49.9% stake in the airline.
By acquiring over 30% of the airline, potential buyers will by law be obliged to make a public offer for all Alitalia shares on the market.
The Treasury's invitation for bids is open to persons or companies, Italian or foreign, which have consolidated capital assets of no less than 100 million euros.
The bids must include a detailed business plan which the Treasury said must be in line with the government's goal of correcting the company's finances and allowing for its future development.
The plan must also seek to protect employment levels and guarantee adequate service throughout the country.
The Treasury added that it was imperative that those who acquire a controlling stake in the airline retain this quota for the time necessary to complete the proposed business plan.
Alitalia's future owners will also be obliged to maintain the airline's national identity and guarantee the quality and quantity of services offered.
All bids must be submitted by January 29 to the Treasury's financial advisor, Merrill Lynch International, which will then draw up a short list of potential buyers who will be asked to formalise their bids.
Alitalia's privatization is expected to be completed in six months.
