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Berlusconi, Putin invite Aeroflot into Alitalia rescue talks
2008-04-18
Russian airline Aeroflot was floated Friday as a potential partner for cash-strapped Alitalia by prime minister-elect Silvio Berlusconi following a meeting with Vladimir Putin. The Italian leader has first to conclude stalled rescue talks with Air France-KLM, but invited Aeroflot -- which withdrew interest in acquiring Rome's 49.9 percent stake in November -- to join an enlarged international conglomerate at some later date. As negotiations with the Franco-Dutch duo progress, according to press reports, Berlusconi is ready to approve a government loan of 100-150 million euros (160-240 million dollars). That comes despite European Commission objections which could mean sanctions being imposed subsequently. "We talked about Alitalia and the possibility of negotiations with Aeroflot," Berlusconi told a press conference after hosting the visiting Russian president at his Sardinian villa. "The situation is open. We have nothing against Air France, but I would like to see (the talks) give rise to a great international group at the heart of which Alitalia would have the same rights as Air France and KLM. "Once negotiations with Air France are concluded, we will be ready to extend an eventual accord to other companies. "There could be a discussion between Aeroflot and Alitalia to examine an eventual strengthening of the two (companies) through the birth of a major international group." Putin said he and Berlusconi had "discussed this problem and it is clear that Prime Minister Berlusconi is preoccupied by the situation and that he is thinking of the national interest. "I have spoken with the head of the Aeroflot board and he is ready to resume contacts with Alitalia," Putin added while stressing that the outcome would be determined by "commercial negotiations". Newspapers Il Sole 24 Ore and Corriere della Sera reported that a state loan, at market rates, could be approved as early as next week. But in Brussels a spokesman for the European Commission maintained that Alitalia is not in any position to receive Italian government aid. "Until 2011, the state cannot provide aid to Alitalia," Michele Cercone said. "All of its relations with the company must be carried out under conditions that would be acceptable to a private investor." European Union regulations stipulate that a company can receive official assistance only once during a given period, he said. Alitalia last received restructuring help from the state in 2001. However, press reports say Berlusconi would be willing to risk EU punishment to ensure Alitalia stays afloat. Berlusconi and the outgoing government have said they would try to agree a common approach in order to save Alitalia from bankruptcy. As he was hosting Putin, Berlusconi despatched right-hand man Gianni Letta to present his ideas to Romano Prodi's outgoing administration.
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