Italian government not stepping on Telecom Italia, Alitalia stake sales- source

By Rizza Sta. Ana

Sep 24, 2013 10:10 AM EDT

A government source told Reuters on Tuesday that the government of Italy would not be intervening over possible stake sales of its national carrier Alitalia and Telecom Italia. Reuters said that both companies were facing the possibility of losing control of ownership over its foreign shareholders.

The source said, "The government is staying out of Alitalia and Telecom Italia."

Alitalia is registered as Compagnia Aerea Italiana SpA. Founded in 2008, its financial status would have some of its investors facing insolvency. Telecom Italia, the largest telecommunications company in Italy, is also active in the industries of manufacturing and media.

Telefonica, a Spanish telecoms group, would reportedly be raising its stake in the Italian telecoms company via a complex deal. The deal would enable Telefonica to strengthen its control over its rival in certain key markets. On the other hand, beleaguered Alitalia, Italy's national carrier, would be looking to lose part of its ownership when Air France-KLM decides on increasing its ownership. 

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