Alitalia shareholders approve rescue proposals

Alitalia shareholders yesterday approved a rescue plan backed by Italy's coalition government that includes a €300 million capital increase, partly underwritten by the state-owned postal services group and two major banks.

The lossmaking Italian flag carrier, which was lurching towards its second bankruptcy in five years, said its board members were ready to resign to reflect Alitalia's new ownership structure after the capital increase.

Investors
Alitalia's 21 Italian investors and Air France-KLM, the largest shareholder with a 25 per cent stake, have 30 days to decide whether to participate in the proposed capital increase – which will take the form of a share issue.

Air France-KLM, which is willing to consider a merger with Alitalia but has set “strict” conditions, is expected to use the 30-day period to push for a wide-ranging overhaul of the Italian airline, including a restructuring of its large debt load.

It means the Franco-Dutch group may not reach a quick decision on whether to participate in Alitalia's €300 million capital increase, with people close to Air France-KLM saying it was leaning against buying additional shares in the Italian airline.

State-owned
No final decisions have been taken and Air France- KLM declined to comment. Alexandre de Juniac, Air France-KLM's chief executive, was due yesterday to hold talks with Massimo Sarmi, his counterpart at Poste Italiane, state-owned postal services group. – (Copyright The Financial Times Limited 2013)