The roller-coaster ride of Italy’s intended sale of its state-owned ITA Airways has just taken another big dip, with Italy’s surprise rejection of Lufthansa and its partner MSC as final bidder for a majority share of the airline.
Instead, Italy named U.S.-based Certares Capital as the single bidder to negotiate a final deal for sale of the airline. Certares is connected in its bid with AirFrance/KLM and Delta Airlines, although they would initially have no financial stake in the company.
Certares offered a reported €600 million for a 60% share in the airline, and proposed measures that would give the Italian government the right to name the airline’s president and to make certain other strategic decisions.
The Lufthansa/MSC bid would have acquired 80% of the airline with a higher per-share bid, but Lufthansa was adamant that it would want full operating control. It had long been expected that Lufthansa/MSC would be the winner, but the insistence on control may have been the sticking point, with Italy about to hold an election that may install a government less willing to let go of ITA.
