Atlantia's request for overhaul of Alitalia plan draws government anger
Reuters
Published Oct 03, 2019 12:23PM ET
Atlantia's request for overhaul of Alitalia plan draws government anger
ROME/MILAN (Reuters) - Benetton-led Atlantia SpA (MI:ATL) raised government hackles on Thursday after saying it would not be able to press ahead with plans to rescue flagship carrier Alitalia as long as the risk of losing its motorway concessions hung over it.
Atlantia, which runs Italian motorway group Autostrade per l'Italia, is part of a group of investors led by the Italian railways backing a possible rescue of the loss-making airline.
But on Thursday a source close to the matter said Atlantia had sent a letter to Italy's Industry ministry asking it to radically revise its Alitalia plan if talks were to go ahead.
"On Alitalia we won't give in to blackmail from anyone," Industry Deputy Minister Stefano Buffagni said on the sidelines of a conference, when asked about the letter.
In the letter Atlantia managers said the continuing risk of losing the motorway concessions meant the company would not be able to invest in Alitalia due to concerns about resources and the safeguard of its shareholders.
Atlantia has previously said it is ready to invest in the airline with Italian railways and U.S. carrier Delta Air Lines Inc (N:DAL) providing the plan guaranteed stable returns in the long term.
The letter - parts of which were published on the website of Italian daily La Repubblica on Thursday and confirmed by the source close to the matter - said Atlantia's advisers had given a negative opinion on the Alitalia rescue deal.
"I think we all need to work together to make things work well," Buffagni, a leading figure in the anti-establishment 5-Star Movement, said.
The ruling coalition 5-Star has been campaigning for almost a year to scrap the Benetton group's concession, blaming Atlantia for a bridge collapse that killed 43 people on its toll network in Genoa last August.
Atlantia, which makes around one-third of its core earnings from its Italian motorway business, denies accusations it neglected maintenance on the bridge.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.