ROME, March 17 Italy's government has approved
Alitalia's AZPIa.MI deal to be acquired by larger rival Air
France-KLM (AIRF.PA) in a bid to avert bankruptcy, a statement
from the Italian cabinet said on Monday.
Air France-KLM offered one share for every 160 shares of
Alitalia, valuing its stock at 0.10 euro a share, or 138 million
euros ($183.8 million) in all -- an 81 percent discount to the
record low price at Friday's close.
Air France-KLM has said it wants the approval of Italy's
next government to be elected in April and Alitalia's
strike-prone unions before concluding the deal.
(Reporting by Deepa Babington)