Read us | Listen to us | Watch us | Join Live Events | Turn Off Ads | Live |

Click on your language to translate this article:

Afrikaans Afrikaans Albanian Albanian Amharic Amharic Arabic Arabic Armenian Armenian Azerbaijani Azerbaijani Basque Basque Belarusian Belarusian Bengali Bengali Bosnian Bosnian Bulgarian Bulgarian Cebuano Cebuano Chichewa Chichewa Chinese (Simplified) Chinese (Simplified) Corsican Corsican Croatian Croatian Czech Czech Dutch Dutch English English Esperanto Esperanto Estonian Estonian Filipino Filipino Finnish Finnish French French Frisian Frisian Galician Galician Georgian Georgian German German Greek Greek Gujarati Gujarati Haitian Creole Haitian Creole Hausa Hausa Hawaiian Hawaiian Hebrew Hebrew Hindi Hindi Hmong Hmong Hungarian Hungarian Icelandic Icelandic Igbo Igbo Indonesian Indonesian Italian Italian Japanese Japanese Javanese Javanese Kannada Kannada Kazakh Kazakh Khmer Khmer Korean Korean Kurdish (Kurmanji) Kurdish (Kurmanji) Kyrgyz Kyrgyz Lao Lao Latin Latin Latvian Latvian Lithuanian Lithuanian Luxembourgish Luxembourgish Macedonian Macedonian Malagasy Malagasy Malay Malay Malayalam Malayalam Maltese Maltese Maori Maori Marathi Marathi Mongolian Mongolian Myanmar (Burmese) Myanmar (Burmese) Nepali Nepali Norwegian Norwegian Pashto Pashto Persian Persian Polish Polish Portuguese Portuguese Punjabi Punjabi Romanian Romanian Russian Russian Samoan Samoan Scottish Gaelic Scottish Gaelic Serbian Serbian Sesotho Sesotho Shona Shona Sindhi Sindhi Sinhala Sinhala Slovak Slovak Slovenian Slovenian Somali Somali Spanish Spanish Sudanese Sudanese Swahili Swahili Swedish Swedish Tajik Tajik Tamil Tamil Thai Thai Turkish Turkish Ukrainian Ukrainian Urdu Urdu Uzbek Uzbek Vietnamese Vietnamese Xhosa Xhosa Yiddish Yiddish Zulu Zulu

Alitalia could attract renewed TPG interest if airline declared insolvent

MILAN (Thomson Financial) – U.S. private equity fund Texas Pacific Group (TPG) could be interested in Alitalia SpA again, if the company is declared insolvent, said TPG partner Vincenzo Morelli, responsible for TPG European investment.

Print Friendly, PDF & Email

MILAN (Thomson Financial) – U.S. private equity fund Texas Pacific Group (TPG) could be interested in Alitalia SpA again, if the company is declared insolvent, said TPG partner Vincenzo Morelli, responsible for TPG European investment.

In an interview in Saturday’s Milano Finanza, Morelli said Alitalia’s situation has deteriorated since it was first put up for sale by the government at the start of last year, and that TPG was interested.

‘While there is life, there is hope. Certainly, however, the Alitalia of today is no longer that of a year and a half ago when the sale process was started,’ he said in the interview.

‘It has a lot less passengers, does not have the means to resolve its situation on its own and whoever buys it will have to make a lot of investments with uncertain returns,’ he said.

He added: ‘I believe that it is difficult for Alitalia to overcome its situation without going through a form of insolvency, that means an administration or a preventative agreement.’

Morelli said Alitalia has debts of 1.5 billion euros and is losing at least 1 million a day, while a year ago it had 800 million in cash.

Last week, the Italian government, which owns 49.9 percent of Alitalia, agreed on a 300 million euros bridging loan to keep the airline afloat while the incoming government seeks a buyer for the airline.

In the interview, Morelli said that according to basic financial principles, Alitalia can’t pay its debts and the only solution is insolvency and re-launch of the parts that are profitable.

‘I don’t seen an alternative. In this case, we (TPG) would be able to think again and return if it interests us,’ he said.

Last week, Air France-KLM (nyse: AKH – news – people ), the only company to have made a binding offer to link up with Alitalia, withdrew its bid.

Incoming prime minister Silvio Berlusconi says he preparing a consortium of Italian businessmen to take over Alitalia, saying at the end of last week it would take some months to buy the airline.

Russia’s Aeroflot is studying an interest in Alitalia, while Deutsche Lufthansa AG (other-otc: DLAKY.PK – news – people ) said it is not interested.

Sunday’s La Stampa said Alitalia trade unions are due to meet possible members of Berlusconi’s consortium on Tuesday, though it cited various union representatives declining to confirm this.

forbes.com

Print Friendly, PDF & Email