Alitalia auction closes without a serious bidder

19 July 2007

A day after the withdrawal of Air One, the last serious bidder for acquiring Italy's national carrier Alitalia after Russia's Aeroflot pulled out last month, the proposed auction of Alitalia, has come to an end, with the fate of the airline uncertain. (See: Alitalia's sale faces the risk of being grounded)

The beleaguered state-owned airline Alitalia, which currently loses more than €1 million every day, faces the threat of being passed on administrators after the government said the auction for its stake in the carrier had closed as another potential bidder, the US buyout firm Matlin Patterson Global Advisers, would not present a binding offer by the 23 July deadline.

Italy's commercial airline Air One withdrew from bidding for up to 49.9-per cent pf the Italian government's stake in Alitalia, of the government's stake saying, "Alitalia's "sustainable growth" would be compromised by the sale conditions."

The departure of Air One from the bidding process left US private equity group, Matlin Patterson Global Advisers, as the sole declared suitor for the purchase.

Other potential bidders including Aeroflot gave similar reasons for leaving the sale process, and also complained about not being given "critical information" relating to Alitalia's financial position. (See: Aeroflot walks out of Alitalia bidding)