Italy close to solution for Alitalia: minister
ROME (Reuters) - Italy is close to finding a solution to rescue near-bankrupt airline Alitalia, Industry Minister Claudio Scajola said on Wednesday, without ruling out the possibility of placing it in extraordinary administration.
"I think that a solution is near that will be able to relaunch a company with Italian capital," Scajola said, adding it would be "significant, useful" for Italy as a whole.
Asked whether Italy would place the state-controlled carrier in extraordinary administration, Scajola said: "The instruments still must be defined."
Alitalia was put up for sale at the start of 2007 by the previous centre-left government but attempts to find a buyer for the state's 49.9 percent stake failed.
Prime Minister Silvio Berlusconi's centre-right government embarked on the latest effort when it took office in May.
It picked Italian bank Intesa Sanpaolo (ISP.MI) as sale adviser and Berlusconi has consistently said he would find an Italian buyer for the airline. Its combative unions helped scupper a deal earlier this year with Air France-KLM (AIRF.PA).
Italian newspapers have carried speculative reports about what a future Alitalia will look like.
La Stampa daily reported on Wednesday Intesa Sanpaolo is aiming for a merger with a domestic player and then "a maxi-alliance with ... Lufthansa (LHAG.DE) or Air France-KLM or British Airways (BAY.L)."
La Repubblica reported that, given the likelihood of job cuts, the government might delay any showdown with unions until the start of September to avoid strikes over the busy summer holiday season.
In a sign that a move towards extraordinary administration may not be imminent, Scajola said he did not believe the cabinet would review the law governing such operations for troubled firms when it meets on Friday.
He has previously said the so-called "Marzano" law would need to be modified if it were to be applied to Alitalia.
Extraordinary administration is a form of bankruptcy protection for troubled firms in which a special administrator is appointed by the government to run the company. The Marzano law regulates such special administrations.
Last week, two investors, Luxembourg-based private equity firm Equinox and holding company Miro Radici Finance, voiced interest in Alitalia's cargo assets.
In cargo, Alitalia employs a fleet of five MD-11 freighters. The airline has 179 aircraft in total.
Shares in Alitalia have been suspended from trade since the beginning of June. The company had a market capitalization of around 610 million euros ($966.9 million) then.
(Editing by Paul Bolding)
