Air France-KLM is 50-50 on participating in Alitalia EUR300 million capital increase - source

October 15
8:40 AM 2013

As Alitalia prepares for a EUR300 million or USD408 million capital hike plan, Air France-KLM was reportedly undecided whether it would join and assist the beleaguered airline's business strategy. Air France-KLM is the Italian airline's biggest shareholder with a 25% ownership stake.

Shareholders of Alitalia had moved to support the issuance of new shares in order to save the airline from filing for bankruptcy. All shareholders of the airline, Air France-KLM included, would have until Novermber 16 to decide on whether they would participate in the share issue.

A source said, "The position of Air France-KLM is 50:50 at this stage. The business plan presented last week was not suitable, the conditions were not fulfilled, particularly in terms of debt restructuring."

However, the source added that Air France-KLM has a strategic interest in Alitalia, but was not clear whether this would win favor for the Italian airline.

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