VENTURE CAPITAL POST

New Italian PM Enrico Letta seeks to block the intent of Air France-KLM to increase its shareholdings in Alitalia.

According to a Reuters report, a struggling Alitalia would be closing shop soon if it won't be getting the cash it needs to implement Alitalia CEO Gabriele Del Torchio's long-term plans.

A government source had told Reuters that Italy would not be intervening on possible takeovers in Telecom Italia and Alitalia.

A bid for Alitalia was being reviewed by the Air France-KLM Group.

Alitalia and Etihad are in discussion as to possible stake purchase from the Italian flag carrier.