Company Watch - Alitalia.Jan 8, 2007
Air France Air France
in full Compagnie Internationale Air France
French passenger and cargo airline with more than 200 destinations in some 80 countries. It introduced supersonic Concorde service in 1976, but financial loss led the company to cease its Concorde and Alitalia each own a 2 percent stake in the other. Air France declined to comment on the launch of the tender. Italian carriers Meridiana and Eurofly declined to comment on whether or not they would bid. Detailed requirements for Alitalia's buyers, such as maintaining minimum levels of service and national coverage, will be specified at a later stage, the Treasury said. Italy plans to conclude the process within six months, Economy Minister Tommaso Padoa-Schioppa said earlier this month. Should the competitive bidding Competitive bidding
A securities offering process in which securities firms submit competing bids to the issuer for the securities the issuer wishes to sell.
1. process fail, Italy may also use a public offer or share swaps to cede its Alitalia stake, the Treasury said. It reiterated it would pick the winning bid based on its economic offer and the ability of its industrial plan to "develop and relaunch Relaunch can refer to several things:
Alitalia Unions Wary After Meeting Financier. Trade unions representing workers at Alitalia remained wary on Tuesday after meeting with a little-known Italian financier who has expressed an interest in buying a stake in the airline. Jan 9, 2007
Investment bank Rothschild is working on a consortium of investors who aim to bid for a stake in Alitalia that Rome is putting up for sale, a source close to Rothschild said on Tuesday, confirming press reports. Asked whether the bank was looking at forming a consortium for the ailing airline's privatization privatization: see nationalization.
Transfer of government services or assets to the private sector. State-owned assets may be sold to private owners, or statutory restrictions on competition between privately and publicly owned , the source said: "Yes". The Italian government has opened the bidding process for the sale of at least 30.1 percent of its 49.9 percent stake in Alitalia and will accept expressions of interests until January 29. Several newspapers said on Tuesday the Rothschild-led consortium for the airline would include Italian as well as two US funds. Jan 9, 2007
Alitalia remains unprofitable after all efforts. Due to a legacy of purchasing choices made for political purposes, it operates five different types of aircraft built by as many manufacturers, multiplying maintenance and pilot-training costs. Due to local pressures and political indecision, the carrier also continues to operate out of both Malpensa and Rome's Fiumicino Airport. Most other airlines cut costs by using only one hub. Analysts have speculated on possible bids for the airline by rivals such as Air One and long-time potential suitor SUITOR. One who is a party to a suit or action in court. One who is a party to an action. In its ancient sense, suitor meant one Who was bound to attend the county court, also, one who formed part of the secta. (q.v.) Air France KLM KLM Kaiserliche Marine (Enigma: Rising Tide game)
KLM Koninklijke Luchtvaart Maatschappij (Royal Dutch Airlines)
KLM Klub Langer Menschen (German: Tall Person Club) , but no leading contenders have emerged so far. Jan 2, 2007
Alitalia, which has a market capitalization Market Capitalization
A measure of a public company's size. Market capitalization is the total dollar value of all outstanding shares. It's calculated by multiplying the number of shares times the current market price. This term is often referred to as market cap. of EUR EUR
In currencies, this is the abbreviation for the Euro.
The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 1.37 billion (USD USD
In currencies, this is the abbreviation for the U.S. Dollar.
The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. $1.81 billion), has not made an operating profit Operating profit (or loss)
Revenue from a firm's regular activities less costs and expenses and before income deductions.
See operating income. in the last five years. The last time it posted a net profit was in 2002, and that only after Dutch carrier KLM paid it EUR200 million to break an alliance. The privatization plan has drawn criticism from some quarters, however. A Lombardy regional government official on Friday attacked it for not specifying measures to protect Milan's Malpensa Airport, one of Alitalia's two main hubs. Since his appointment in 2004, Alitalia Chief Executive Giancarlo Cimoli repeatedly clashed with the carrier's 10 unions as he cut one-fifth of the workforce and split the carrier in two, putting the services and maintenance units into a separate company called AZ Servizi with the aim of selling them. Jan 2, 2007
Italy Opens Bidding For Alitalia. Italy has opened the bidding process for state-controlled Alitalia, hoping that private investors will succeed in reviving the unprofitable carrier after repeated injections of state aid failed. Italy has invited offers of interest for at least 30.1 percent of Alitalia's shares, and possibly as much as the entire Treasury stake of 49.9 percent. In setting the terms of the bidding process, the Treasury said the buyers must keep a stake of at least 30.1 percent in Alitalia until they met the targets of an industrial plan, as well as maintain the carrier's "national identity". Under Italian law, a buyer of more than 30 percent of a company must make a public offer for the rest of the outstanding shares. Jan 2, 2007
Smaller Italian airline Meridiana, which is controlled by Prince Karim Aga Khan Aga Khan (ä`gä khän), the title of the religious leader and imam of the Ismaili Nizari sect of Islam, originally bestowed by the Persian shah Fath Ali on Hasan Ali Shah, 1800–1881, the 46th Ismaili imam, in 1818. , is also expected to put in a bid for Alitalia, according to according to
1. As stated or indicated by; on the authority of: according to historians.
2. In keeping with: according to instructions.
3. press reports. Last month, Meridiana bought 30 percent of fellow carrier Eurofly. Little-known Italian financier and consultant Paolo Alazraki said last week he was working with 16 unidentified investors to study a bid for Alitalia, the first open expression of interest in the carrier. Alitalia, which has a market capitalization of about EUR1.47 billion (USD$1.91 billion), has not made an operating profit in the last five years. Long-term potential suitor Air France has so far made no comment on the Alitalia sale. The two airlines own a 2 percent stake in each other. Jan 9, 2007 Editor: Aram Gesar, eMail: edit@AirGuideOnline.com
For more global news, reviews, features and analysis, please go to: http://www.airguideonline.com/onlinenews.htm
To Subscribe to Verb 1. subscribe to - receive or obtain regularly; "We take the Times every day"
buy, purchase - obtain by purchase; acquire by means of a financial transaction; "The family purchased a new car"; "The conglomerate acquired a new company"; our Newsletters: http://www.airguideonline.com/order_formsubs.htm#news
To Advertise: advert@AirGuideOnline.com
Jan 1, 2007