Italy seeks Alitalia sale, rules out rescue

Italy's centre-left government said Wednesday Alitalia would be sold to the "highest bidder", again ruling out a state rescue as fears mounted that the troubled airline is plummeting towards bankruptcy. PM Paolo Gentiloni said he had been disappointed by staff's rejection of a rescue plan involving deep job and salary cuts, and reiterated that the state could not and would not step in.<br/>"The truth is what I said before the vote and what I say again today: the conditions are not there for Alitalia to be nationalised," Gentiloni said. Transport Minister Graziano Delrio meanwhile said the company would be "sold to the highest bidder" and the government made favourable noises about the mooted possibility of a partial takeover by Lufthansa. The loss-making national carrier's future is up in the air after its workforce rejected a restructuring plan which management had presented as the only alternative to bankruptcy. Etihad Airways, which owns a 49% stake in Alitalia, and other shareholders had made staff acceptance of the plan a precondition for their participation in a E2b recapitalisation plan involving a combination of loans and new shareholder financing. But despite earlier proposals being watered down in negotiations with unions, over two thirds of staff voted to reject them in a ballot on Monday, in which more than 90% of employees took part. The latest draft of the restructuring plan involves eliminating 1,700 jobs from a global headcount of 12,500 and wage cuts of up to 8% for some of the remaining staff.<br/>