UPDATE 1-Ryanair files EU complaint over Alitalia deal
(Adds EU comment, CAI statement)
DUBLIN/MILAN, Oct 2 (Reuters) - Irish low-cost carrier Ryanair Holdings Plc asked the European Commission to block changes to Italian bankruptcy law designed to facilitate the rescue of Alitalia SpA, saying they ran foul of rules on state aid.
"The Italian government is writing off up to 2 billion euros ($2.8 billion) in Alitalia debts and is guaranteeing the investments by the members of the consortium and underwriting huge concessions to the unions in exchange for their agreement to these ludicrous plans," said Jim Callaghan, Ryanair's (RYA.L) (RYA.I) director of legal and regulatory affairs in a statement on Thursday.
The European Commission, which said it had not been notified of any aid package to Alitalia, can hold up Italian group CAI's planned takeover of Alitalia if it determines the deal restricts competition or benefits from unfair government aid.
Italian Prime Minister Silvio Berlusconi pushed through changes to bankruptcy law last month to allow Alitalia to be split up and pave the way for its bailout by the CAI group.
The CAI consortium on Thursday formally reinstated its offer to buy Alitalia's profitable assets in a bid to relaunch the airline by early November after briefly withdrawing it last month over union opposition.
Alitalia's nine unions have since agreed to support CAI's rescue, breathing life into the deal.
Corrado Passera, CEO of CAI member Intesa Sanpaolo (ISP.MI), said there were new requests from potential investors seeking to join the existing 16 members in the consortium.
CAI will choose a foreign partner for Alitalia in the coming weeks, Passera said. Air France-KLM (AIRF.PA) and Lufthansa AG (LHAG.DE) are expected to battle it out for a minority stake in Alitalia, with the German carrier seen edging out its French rival thanks to the open support of Berlusconi and unions. (Reporting by Jonathan Saul in Dublin, Krisztina Than in Brussels and Stefano Rebaudo in Milan; Writing by Deepa Babington; Editing by David Holmes)
