MatlinPatterson Global Advisers has shown a renewed interest in acquiring a controlling stake in Italian carrier Alitalia and will be allowed to see the airline's books in view of presenting a formal bid, the Italian economy ministry said on Tuesday.
The American private equity firm had previously been part of a consortium with Texas Pacific Group and the Milan merchant bank Mediobanca which had been one of the three final bidders invited in April to present a formal offers for Alitalia.
However, the consortium pulled out of the race last month because it said the conditions imposed by the Treasury were too strict.
These conditions included: the requirement to hold on to all acquired capital and assets for three years; keeping the Alitalia logo and brand for at least eight years; making no changes to the business plan nor employment levels for three years, unless in agreement with unions; and maintaining "adequate" service on domestic, continental and international routes for at least five years.
The other remaining bidders were AirOne, Italy's second biggest airline allied with the Intesa SanPaolo bank, and Aeroflot Russian Airlines, together with Italy's biggest bank UniCredit, in the running for Alitalia.
On Tuesday all three were granted access to the so-called data room so they can complete due diligence ahead of presenting their final bid by July 2.
Alitalia's privatization ran into turbulence over the past week when AirOne complained that it had not been given sufficient information on the company's true economic status, while Aeroflot renewed its complaint that the Italian carrier's price tag was too high.
The Italian government decided at the end of last year to sell most of its 49.9% stake in Alitalia. At first the Treasury indicated it would retain "no more" than a 10% interest, but last month Economy Minister Tommaso Padoa-Schioppa told parliament that the full 49.9% stake could be sold under the proper conditions.
Alitalia last week announced a first-quarter net loss of 135 million euros compared to 159 million in the first quarter of 2006 and said it had sufficient cash to continue operating for another 12 months.
It said it expected to end 2007 with a better operating result than the previous year but could not make any forecasts for 2008 because of the privatisation process under way.
In May, the carrier announced a full-year net loss of 625.6 million euros, 458 million more than previously indicated.
Alitalia has not posted an operating profit since 1998.
