Italy close to solution for Alitalia: minister

By Giuseppe Fonte

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: Quote, Profile, Research, Stock Buzz) 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: Quote, Profile, Research, Stock Buzz).

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: Quote, Profile, Research, Stock Buzz) or Air France-KLM or British Airways (BAY.L: Quote, Profile, Research, Stock Buzz)."