Air France-KLM says Alitalia deal in Italian hands

LONDON (Reuters) - Air France-KLM (AIRF.PA) said the success of its offer for ailing rival Alitalia AZPIa.MI was in the hands of its Italian partners as unions in Italy continue to battle against its plans.

The situation at loss-making Alitalia was "difficult", Air France Chief Operating Officer Pierre-Henri Gourgeon told journalists at a news conference in London on Monday.

"I am not able to predict the result of the negotiations we have engaged in," Gourgeon said. "But we have made a precise offer. The future (of the offer) now depends on our Italian partners."

Talks were due to resume on Monday between Air France-KLM and Alitalia's unions. The Franco-Dutch carrier, also battling resistance from Italian politicians and Milan's airport operator, has said it will scrap the deal without union backing.

The takeover is seen as one of Alitalia's last hopes of averting bankruptcy, though media magnate and former prime minister Silvio Berlusconi has threatened a veto from Italy's next government should he win upcoming elections, as polls suggest he will.

Despite Alitalia's history of losses and frequent strikes, its dominance of the lucrative Milan-Rome route makes it an attractive asset for Air France-KLM, which hopes to restore the carrier to profit in two years.

Shares in Alitalia were suspended on Monday. Air France-KLM stock was 0.2 percent weaker at 17.68 euros by 1107 GMT.

(Reporting by Matthias Blamont, writing by James Regan, editing by Will Waterman)