Quotes: US MENA   Enter Symbol: NewsLetter: Search: advanced

Etihad-Alitalia deal nears  Join our daily free Newsletter

MENAFN - Khaleej Times - 08/06/2014
No. of Ratings : 0
Add to Mixx!



(MENAFN - Khaleej Times) Alitalia board of directors gives mandate to make etihad top shareholder

alitalia is expected to strike an ‘eminent stake deal’ with etihad airways soon as its board has cleared the rescue plan submitted by gulf airline to turnaround the italy’s flagship carrier by 2017.

the airline’s board of directors which met on friday said they would seek to secure a final deal to make etihad airways top shareholder in alitalia by acquiring 49 per cent stake in the airline according to media reports.

“the board has allowed alitalia president roberto colaninno and chief executive gabriele del torchio to continue negotiations for the drafting of a definitive agreement with the uae company” the airline’s board said in a statement.

italian government which terms the airlines as a strategic asset has welcomed the move. transport minister maurizio lupi who has been deeply involved in the case welcomed the announcement on social media and expressed his hope to conclude the deal quickly.

“the airline’s board gives a mandate to close (negotiations) with etihad. good! italy is again attracting foreign capital. now forward swiftly!” the minister tweeted.

etihad airways has been negotiating since december to buy up to 49 per cent stakes in alitalia which is facing bankruptcy if a deal is not finalised till august. the italian flaf carrier was kept afloat by a government-engineered 680 million rescue package last year but risks having to ground its planes unless it strikes a deal with etihad airways for investment in long-haul routes and planes.

“etihad which already has stakes in airberlin and aer lingus is looking to invest more than 682 million in exchange for a 49 per cent stake in alitalia sources close to the talks have said. however negotiations did not move forward due to differences over alitalia’s heavy debt and proposed job cuts of up to 2500 to revitalise the troubled airline.

according to italian media the issue of debt had still not been discussed after a meeting between the banks and the italian government on thursday. the banks have already expressed their basic support to etihad’s rescue plan sources close to the talks have said although details of the debt restructuring still need to be defined.

options proposed include the banks writing off parts of the debt and converting the remainder into equity. unions also need to agree to proposed job cuts which italy’s labour minister giuliano poletti said this week could be as high as 2500 almost a fifth of the total workforce. part of the cuts would be covered by state-sponsored layoff schemes. unions are expected to meet on june 12.

alitalia’s board “expressed appreciation” for etihad’s proposals which include plans to make the italian carrier profitable by 2017. the board will again meet on june 13 to approve the company’s long-delayed financial results for last year. in 2012 the company reported a net loss of €280 million.

italy’s flagship carrier is expected to run out of cash by august sources said adding that the company italy’s government and unions have little choice but to accept a deal on etihad’s terms.

etihad still needs to secure an agreement with alitalia’s creditors mainly italy’s top two lenders intesa sanpaolo and unicredit on how to restructure around €700 million of the debt.


 






  MENA News Headlines
 Jul 29 2014 - New additions to Local Harvest brand of datesKhaleej Times
(MENAFN - Khaleej Times) E dates come from farmers who have contracts with ADFSC and therefore practise date palm farming according to the centres standards.For the next three weeks the Abu Dhabi ...

 Jul 29 2014 - PayTabs to launch online solutions in Bahrain, SaudiMENAFN
(MENAFN) PayTabs, a payment processing solution company co-owned by Saudi Aramco, is set to launch its online payment processing solutions in Bahrain and Saudi Arabia, Gulf Daily News reported.The ...

 Jul 29 2014 - Mobily signs LTE-4G roaming deal with BatelcoMENAFN
(MENAFN) Mobily telecom has signed an LTE-4G roaming deal with Bahrini Batelco to provide customers with advanced Internet services, Arab News reported.This agreement coincides with Eid Al-Fitr ...

 Jul 29 2014 - Radiant During RamadanMuscat Daily
(MENAFN - Muscat Daily) Keep your skin and hair glowing and shiny even as you're fasting in this holy month. Some tips... Moisturise Your skin too gets dehydrated when you fast. It is ...

 Jul 29 2014 - Nawras net profit grows 23 in H1Muscat Daily
(MENAFN - Muscat Daily) Omani Qatari Telecommunications Co SAOG (Nawras) on Wednesday said net profit for the first half of 2014 rose 23 per cent, driven by higher earnings before interest, taxes, ...

 Jul 29 2014 - Duqm Airport takes offMuscat Daily
(MENAFN - Muscat Daily) The newly opened Duqm Airport received its first Oman Air flight ahead of schedule on Wednesday with officials saying that the facility will serve as an air transport and ...

 Jul 29 2014 - Air fares rise by 35 as travellers rush to make the most of long breakMuscat Daily
(MENAFN - Muscat Daily) Fares of most airlines have gone up due to the increase in demand during Eid al Fitr holidays. The prices of tickets to different destinations have gone up by nearly 35 per ...

 Jul 29 2014 - MoHC invites bid for construction of $250mn Oman Cultural ComplexMuscat Daily
(MENAFN - Muscat Daily) After announcing the appointment of the UK-based international consultancy and construction company, Mace as project manager for the Oman Cultural Complex (OCC), the Ministry ...

 Jul 29 2014 - Moon sighting expected on Monday eveningMuscat Daily
(MENAFN - Muscat Daily) The crescent of the new moon is expected to be visible on Monday evening across all governorates in the sultanate, marking the beginning of the month of Shawwal, according to ...

 Jul 29 2014 - Pakistan's film industry becomes alive againArab News
(MENAFN - Arab News) HORE: A breed of brand new independent filmmakers is successfully filling the void left by an obsolete industry known as Lollywood.In many ways 2013 was an era-defining year for ...

more...


 






Google

 
 

Middle East North Africa - Financial Network

MENAFN News Market Data Countries Tools Section  
 

Middle East North Africa - Financial Network
Arabic MENAFN

Main News
News By Industry
News By Country

IPO News
Islamic Finance News
Private Equity News

How-To Guides
Technology Section

Travel Section

Search News

Market Indices
Quotes & Charts

Global Indices
Arab Indices

US Markets Details

Commodoties

Oil & Energy

Currencies Cross Rates
Currencies Updates
Currency Converter

USA Stocks
Arab Stocks
 

Algeria 
Bahrain 
Egypt 
Iraq
Jordan 
Kuwait 
Lebanon
Morocco 
Oman 
Palestine
Qatar 
Saudi Arabia 
Syria
Tunisia 
UAE 
Yemen

Weather
Investment Game
Economic Calendar
Financial Glossary

My MENAFN
Portfolio Tracker

Voting

Financial Calculators

RSS Feeds [XML]

Corporate Monitor

Events

Real Estate
Submit Your Property

Arab Research
Buy a Research

Press Releases
Submit your PR

Join Newsletters


 
© 2000 menafn.com All Rights Reserved.  Terms of Service | Privacy Policy | Contact Us | Advertise | About MENAFN | Career Opportunities | Feedback | Help