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Alitalia board set to vote on rescue plan

October 11. 2013 11:36AM
Associated Press

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(AP) The Alitalia board was meeting Friday on a new rescue plan to raise 500 million euros ($678 million) for Italy's struggling flagship airline.

Under the rescue package, 300 million euros would come from a capital increase. Of that sum, the Italian Postal Service would contribute up to 75 million euros. Members of the consortium that runs Alitalia will meet Monday to decide how much they can contribute to the capital increase, and there is a provision for a 100 million euro bridge loan from the banks.

On top of the capital increase, banks Intesa San Paolo and Unicredit are preparing a 200 million-euro line of credit.

Analysts say the rescue would better position Alitalia to negotiate a deeper alliance with Air France-KLM, which holds a 25-percent stake but withdrew a takeover offer in 2008 under political pressure.

Associated Press

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