A ruling on a suit filed by AP Holding against exclusive negotiations between Alitalia and Air France-KLM for the Treasury's stake in the Italian national carrier will be made on February 20, the Lazio regional administrative court (TAR) said on Tuesday.
AP Holding, the parent company of Italy' biggest private airline Air One, filed the suit at the end of last month challenging the exclusive talks and has since said it was ready to present its own binding offer for Alitalia as an alternative to any presented by the French-Dutch carrier.
The Italian government decided at the end of 2006 to sell most if not all of the Treasury's 49.9% stake in Alitalia.
After an attempt to auction the stake failed last summer, it was decided that Alitalia management would negotiate the direct sale of the Treasury's stake, with the government having the final word on the deal.
Alitalia's board on December 21 unanimously chose Air France-KLM over AP Holding, the two remaining bidders, because it said it offered the best guarantees for the national carrier's future.
Merger talks officially opened in mid-January and are set to conclude by mid-March.
However, the operation has now been complicated by the downfall of Italy's center-left government and the prospect of a return to power of the center-right, which has been critical of the Alitalia operation.
Air France-KLM, Europe's biggest airline, had been a front-runner from the start thanks to its size as well as the fact that it already owns a 2% stake in Alitalia, making it the second biggest shareholder after the Treasury. They are also partners in the SkyTeam alliance. said it was ready to make a bid for 100% of Alitalia through a share-swap with Europe's biggest carrier.
The group also said it would buy up outstanding Alitalia convertible bonds and planned an immediate investment of 750 million euros, through a rights issue open to all Alitalia shareholders and guaranteed by Air France-KLM.
The French-Dutch carrier said that renewing Alitalia's fleet would be a top priority and that together the three European brands ''will be able to offer clients an unparalleled international network''.
Total investments by 2015 were put at 6.5 billion euros.
AP Holding initially offered one euro cent per Alitalia share held by the Treasury, compared to a reported 35 cents by Air France-KLM. It said it expected Alitalia to break even by 2009 and to return to profit by 2010.
AP Holding's offer included investments totalling five billion euros, one billion to boost Alitalia's capital and four to renew its fleet.
Any decision on an international partner would be made once the airline was back on its feet, the group said.
