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Image header Agence Europe
Europe Daily Bulletin No. 9624
Contents Publication in full By article 30 / 43
GENERAL NEWS / (eu) eu/competition

Air France/Alitalia merger takes shape

Brussels, 17/03/2008 (Agence Europe) - The Air France consortium's offer to acquire the Italian airline Alitalia has been accepted by the company's board. The proposed transaction estimates the value of the former Italian national operator at just €139 million, a figure far less than its stock market value even considering its dramatic drop on Saturday. The trade unions, which were not consulted on the structure of the offer, have expressed their dissatisfaction. Alitalia has been within a hair's breadth of bankruptcy, and is currently losing €1 million daily. The proposed acquisition is already being examined by the European Commission to ensure that it does not involve any illegal state aid. The operation's conformity will also be examined by DG Competition once it is formally notified. The Competition Commissioner's decision is expected around June. Last week Air France and Alitalia were both the subject of Commission inspections, suspected of involvement in an illegal cartel on the market for air routes to Japan (EUROPE 9621) (C.D.)

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