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Alitalia To Go To the Highest BidderDecember 6, 2006 By: Jennifer Merritt Travel Agent
Italy's Treasury on Tuesday said it plans to sell at least 30.1 percent of Alitalia shares to the highest bidder. According to Italian government rules, buying a 30.1 percent in a company forces a mandatory bid for the remaining shares of cash or other securities, meaning whoever buys the stake of the long troubled carrier must also make a cash bid for the rest of the airline, Reuters reports. Alitalia, valued at $1.77 billion, blames labor unrest, the high price of fuel and competition from low-cost carriers for its expected $266.4 million year-end loss.