Alitalia is to receive a cash injection of at least €100 million ($135 million), the board of the loss-making Italian air carrier said on Thursday, amid speculation of a takeover from minority shareholder Air France-KLM.
Alitalia said it had made a loss of €294 million in the first six months of the year, compared to €201 million in the same period in 2012, and has liquidity worth around €128 million left.
A shareholders’ meeting has been called for October 14 to approve the capital increase, as well as the disbursement of the last €55-million tranche of a €150-million loan decreed earlier this year.
Another board meeting was scheduled for October 3, where Air France—KLM’s plans to increase its stake in the company could be discussed.
In 2008, Air France-KLM offered to buy Alitalia for around €2.5 billion, but was blocked by then premier Silvio Berlusconi on the grounds of economic nationalism. It may snap up the company now for €150 million, the La Repubblica daily wrote this week.
Rather than selling to foreigners, Berlusconi offloaded the bulk of Alitalia’s debts onto the state and gave the business to a consortium of Italian businessmen, who failed to revive the company’s fortunes. Air France-KLM entered the deal with a 25-per-cent stake.