Alitalia shares up on bidders list

Alitalia's sale has taken off with a surprising 11 potential bidders, although signs emerged today that not all those expressing…

Alitalia's sale has taken off with a surprising 11 potential bidders, although signs emerged today that not all those expressing interest may stay the course.

Most of the interest has come from buyout funds betting on a recovery at Alitalia, which is losing €1 million a day to labour problems and high fuel costs, but Italy's second-largest bank Unicredit also bid.

Alitalia's illiquid shares were up more than 3 per cent in early trade; Unicredit was 0.4 per cent down.

Long-time commercial partner Air France-KLM did not express interest yesterday's deadline, saying conditions were not right for a bid now.

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Transport Minister Alessandro Bianchi said Air France could still come forward, at the same time as he ruled out one of those who had thrown their hat in the ring - Fabio Scaccia, a professor who says he doesn't have a penny to his name.

Mr Bianchi added that Scaccia "will be excluded" because he is an individual and therefore ruled out from the sale.

Industry Minister Pierluigi Bersani said another two months was needed to close the sale.

Italy, which holds 49.9 per cent of Alitalia, is seeking bidders for at least a 30.1 per cent stake, forcing any buyer to make an offer for the entire airline.