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Italian Transport Minister wants Treasury to maintain Alitalia stake
POSTED: 2:10 p.m. EDT, January 31,2007

Italian Transport Minister Alessandro Bianchi has suggested that the Treasury maintain a "significant" stake in national carrier Alitalia even after it is privatized, local media reported on Tuesday.

After a tender closed for initial bids for a 30.1 percent stake of Alitalia, Bianchi observed that in his personal point of view " the Treasury must decide whether to maintain an interest and, if so, in what measure."

According to the minister, a "significant" stake needed to be more than 5 percent "to allow us to have our say, if anyone wants to listen".

The state currently holds 49.9 percent of Alitalia and intends to sell no less than 30.1 percent. This means that it could at most maintain a 9.8 percent interest in the airline.

However, some potential buyers have expressed an interest in acquiring the state's full interest in the carrier.

After receiving 11 bids on Monday, the government will now examine them for the next two or three months in order to draw up a short list from which formal and definitive bids will be invited.

The whole privatization operation is expected to take about six months.


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