Air France may buy stake in Alitalia

Air France-KLM could take a stake of 10 to 20 per cent in a revitalised group spun out of bankrupt Alitalia and become a majority owner within five years, French daily La Tribune has reported.

Air France-KLM declined to comment on the report in today's issue of the paper.

Air France-KLM, which failed to agree on a deal to buy the Italian airline in April, has publicly said it was now ready to take a minority stake but has not provided details.

The Franco-Dutch airline would invest in Alitalia alongside a number of Italian industrial groups, La Tribune said, without citing its sources.

Alitalia is in talks with unions, politicians and industrial groups to define a rescue plan.

"The heads of Intesa could have gone further (than just offering a minority stake) by giving to Air France the option of becoming a majority owner within five years, by 2013," La Tribune said.