Desperate efforts by the Italian government to find a buyer for Alitalia ran into deeper trouble yesterday as shares in the lossmaking airline plunged on the Milan stock exchange and unions threatened wildcat strikes over the Christmas holidays.
In addition, Consob, the stock market regulator, launched inquiries into possible market abuse involving Alitalia shares following leaks to the media of the share price offered by Air France-KLM and Italy's Air One, as well as a third expression of interest which was possibly a hoax.
However, officials insisted that the government's sale of its 49.9 per cent stake would go ahead but that more discussions were needed before deciding which of the two non-binding offers made last week would lead to further negotiations.
Fearing job losses, union chiefs threatened disruptions over the holiday period unless they were fully briefed on the offers.
Luigi Angeletti, secretary general of the UIL federation, called management of the sale "scandalous", singling out Tommaso Padoa-Schioppa, the finance minister, for criticism.
The government was in a quandary, officials said. Hostility among unions and some politicians might lead Air France-KLM to withdraw its offer, while Air One, whose revenues last year were about equal to Alitalia's losses, was seen as too small and not financially robust enough to manage the takeover.
Some fear that bankruptcy is looming. An auction to sell Alitalia collapsed last July.
Alitalia shares plunged as much as 28 per cent following suspension, but in late afternoon trading recovered to show a 12 per cent fall at €0.76. Air One declined to comment on a report that it had offered one cent a share. Alitalia did not deny the amount, but said "such elements" were "incomplete and not fully corresponding to the facts".
Singapore Airlines (SIA) said yesterday that it may have been the victim of a stock market hoax involving a purported bid for Alitalia. Alitalia said on Thursday it had received a letter naming SIA as a member of a consortium expressing interest in making a bid. SIA denied this. Alitalia shares rose as much as 2.9 per cent in the meantime.
