Alitalia board in marathon meeting on takeover

ROME, March 15 (Reuters) - Members of Alitalia's (AZPIa.MI: Quote, Profile, Research, Stock Buzz) board were holding marathon talks on Saturday to discuss an Air France-KLM (AIRF.PA: Quote, Profile, Research, Stock Buzz) offer to buy the ailing state-controlled Italian carrier.

Looking to fend off a cash crisis, state-controlled Alitalia is pushing to wrap up a sale to long-time partner Air France-KLM after eight weeks of exclusive takeover talks.

It had already chosen Air France-KLM in December as its preferred suitor. It was expected to formally approve the offer at Saturday's meeting, which started in the morning and was continuing late into the night after more than 12 hours .

An Alitalia spokesman said the board was still meeting and declined further comment.

Alitalia, which has lost money for five years in a row and needs 750 million euros ($1.17 billion) pumped into its coffers by mid-year to keep flying, earlier this week said it would also discuss its finances at the meeting.

The Franco-Dutch carrier was expected to have submitted its binding offer on Friday, but neither it nor Alitalia have issued any public statement so far.

Air France-KLM said this week its board had decided to present a binding offer, but conditional on the approval of Alitalia's unions.

Alitalia has convened its unions for a Tuesday meeting with management, a union source said.

Italian news agency Radiocor on Friday reported Air France-KLM's bid offered one share for every 70 of Alitalia's -- valuing the airline at about 317 million euros, or less than half its current share price.