Italy inviting bids for Alitalia SpA

Italy inviting bids for Alitalia SpA

The Italian government has opened up bidding for the Alitalia SpA and the prospective buyers would have a month to submit their bids.

This news alone helped the airline company gain at the stock market as its share price gained 5.9%.

Bidders would be required to submit their bids by Jan. 29 to Merrill Lynch International. The government has also said that the bidders would have to pledge that they would hold at least 30.1 percent of the unprofitable carrier long enough to oversee its recovery.

The government had said earlier this month that they would reduce their stake in the company. They are seeking international partners to help turn around the airline. Alitalia has not posted profits since 2002. The government currently owns 49.9 percent of the airline’s shares and 62.5 percent of its 715 million-euro convertible bond due in 2010.