Gordon Werner

Alpi Eagles Seeks to Acquire Interest in Alitalia From Italy

By Tomaso Eridani
Staff Reporter of The Wall Street Journal

MILAN -- The chairman of Italian regional airline Alpi Eagles SpA said he wants to acquire part of the government's majority stake in national carrier Alitalia SpA.

Entrepreneur Paolo Sinigaglia said he is alone in studying the venture but would involve other investors, such as fellow shareholders of Alpi Eagles, to carry it through. These shareholders include the Benetton family, clothing manufacturer Stefanel SpA and Interbanca, the investment bank of Banca Antoniana Veneta.

"Leading government figures have confirmed to me their will to further privatize Alitalia, and I would be interested in taking a significant stake along with a group of investors," Mr. Sinigaglia said.

A spokesman for Edizione Holding, the Benettons' holding company with an 18% stake in Alpi Eagles, said the family "is not interested" in Alitalia. Mr. Sinigaglia, however, said he is studying Alitalia's accounts and business plan, and hopes to present a proposal to other investors, including Benetton, in around a month.

The Italian Treasury is the majority shareholder in Alitalia with a 53% stake. In response to Mr. Sinigaglia's expression of interest, the Treasury has said that talk of Alitalia's future is "premature." The issue is still under consideration and any privatization would follow the "regular procedure," a Treasury spokeswoman said.

"Alitalia does have problems, such as low productivity and outdated fleet, but if redirected it could prove a sound investment," said Mr. Sinigaglia.

Plans to further privatize Alitalia have long been hampered by problems in developing the airline's new hub at Milan's Malpensa airport and the prolonged difficulties in its search for an international partner. The search ended last month when Alitalia signed commercial alliances with Air France SA and Delta Air Lines . It is expected to join their Sky Team program in November.

Alitalia has struggled with profitability and posted a loss of 495 billion lire ($233.1 million or 255.6 million euros) in 2000. Alpi Eagles flies a series of national and European routes from its base at Venice airport.

Write to Tomaso Eridani at tomaso.eridani@wsj.com