Russian airline Aeroflot is seeking up to €900 million in loans from western banks to fund its purchase of 39.9 per cent of Italy's Alitalia, it was reported today.
Russia's Vedomostinewspaper quoted Mikhail Poluboyarinov, the Russian flag carrier's finance director, as saying Aeroflot had sent letters to 20 foreign banks including Deutsche Bank, Bank of Scotland, Citigroup, Commerzbank and ABN AMRO.
Vedomostiquoted a source involved in the talks with banks as saying it hoped to borrow between €500 million and €900 million.
Mr Poluboyarinov declined to name the amount but said it would be an unsecured, one-year loan and that the airline expected answers from the banks by the end of May.
Apart from Aeroflot, the bidders for the Alitalia stake are a US private equity consortium led by Texas Pacific Group and smaller Italian carrier Air One.