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Alitalia calls emergency meeting | Alitalia calls emergency meeting |
(about 1 hour later) | |
Alitalia management are holding an emergency board meeting after the chairman quit amid the collapse of takeover talks with Air France-KLM. | Alitalia management are holding an emergency board meeting after the chairman quit amid the collapse of takeover talks with Air France-KLM. |
Maurizio Prato stood down after the breakdown of talks between Alitalia's unions and Air France-KLM management. | Maurizio Prato stood down after the breakdown of talks between Alitalia's unions and Air France-KLM management. |
He had warned the unions that Alitalia risked going bankrupt if they did not accept the deal. | He had warned the unions that Alitalia risked going bankrupt if they did not accept the deal. |
Italy's government said it would investigate whether the takeover could still be salvaged. | |
The Italian cabinet was due to discuss the crisis on Thursday. | The Italian cabinet was due to discuss the crisis on Thursday. |
Shares suspended | Shares suspended |
Trading in Alitalia shares was suspended on Thursday. | Trading in Alitalia shares was suspended on Thursday. |
"This company is cursed: only an exorcist can save it," Mr Prato was quoted by unions as saying after the negotiations collapsed. | "This company is cursed: only an exorcist can save it," Mr Prato was quoted by unions as saying after the negotiations collapsed. |
This is a very dire situation Erika Young, FILT-CGIL union | This is a very dire situation Erika Young, FILT-CGIL union |
The Italian government has been trying for more than a year to sell its 49.9% stake in the troubled national airline and says there are no other bidders. | The Italian government has been trying for more than a year to sell its 49.9% stake in the troubled national airline and says there are no other bidders. |
The collapse in negotiations leaves the state-owned airline on the ropes just 11 days before a general election. | The collapse in negotiations leaves the state-owned airline on the ropes just 11 days before a general election. |
The government's sale of Alitalia has been opposed by prime ministerial candidate Silvio Berlusconi. | The government's sale of Alitalia has been opposed by prime ministerial candidate Silvio Berlusconi. |
'Dire situation' | 'Dire situation' |
Unions had objected to the expected loss of 2,100 jobs under the takeover plans. | Unions had objected to the expected loss of 2,100 jobs under the takeover plans. |
FILT-CGIL, the largest of nine unions representing Alitalia workers blamed Air France-KLM's chairman Jean-Cyril Spinetta, for the collapse of takeover talks. | FILT-CGIL, the largest of nine unions representing Alitalia workers blamed Air France-KLM's chairman Jean-Cyril Spinetta, for the collapse of takeover talks. |
Meanwhile the final straw for Air France-KLM appeared to be a last minute attempt from unions to broker a side deal with an unidentified Italian company. | Meanwhile the final straw for Air France-KLM appeared to be a last minute attempt from unions to broker a side deal with an unidentified Italian company. |
The union defended its tactics: "It was a proposal by an Italian company to inject more cash into (Alitalia) and therefore give the company a better future, more investment and a relaunch," Erika Young, international officer for FILT-CGIL, told the BBC's World Business Report | The union defended its tactics: "It was a proposal by an Italian company to inject more cash into (Alitalia) and therefore give the company a better future, more investment and a relaunch," Erika Young, international officer for FILT-CGIL, told the BBC's World Business Report |
Air France-KLM has twice agreed to extend the deadline for a deal to take over the cash-strapped airline and increased its offer to 139m euros. | Air France-KLM has twice agreed to extend the deadline for a deal to take over the cash-strapped airline and increased its offer to 139m euros. |
"This is a very dire situation," Ms Young said. | "This is a very dire situation," Ms Young said. |
"We are still state-owned and therefore it's the government's responsibility to tell us now what they intend to do and how they intend to keep the Italian flag carrier afloat." | "We are still state-owned and therefore it's the government's responsibility to tell us now what they intend to do and how they intend to keep the Italian flag carrier afloat." |
Administration risk | Administration risk |
On Wednesday, Economy Minister Tommaso Padoa-Schioppa said the only alternative to the Air France-KLM offer would be to put Alitalia into emergency administration. | On Wednesday, Economy Minister Tommaso Padoa-Schioppa said the only alternative to the Air France-KLM offer would be to put Alitalia into emergency administration. |
He also said a 300m euro ($470m; £236m) state bridging loan to Alitalia would be impossible unless the Air France-KLM deal was signed. | He also said a 300m euro ($470m; £236m) state bridging loan to Alitalia would be impossible unless the Air France-KLM deal was signed. |
Air France-KLM's offer to buy Alitalia for 0.10 euros per share would have needed union backing to go ahead. | Air France-KLM's offer to buy Alitalia for 0.10 euros per share would have needed union backing to go ahead. |