Hopes for new Alitalia investor fade after Rome denial

The Italian government denied media speculation Friday it had sought to tempt infrastructure group Toto Holding to invest in loss-making airline Alitalia, dampening hopes that the flag carrier could soon be rescued. The office of Economic Development Minister Luigi Di Maio denied a report by news agency Ansa which said the minister and one of Toto's controlling family shareholders had met in southern Italy this week to discuss Alitalia. "There have been no contacts between Luigi Di Maio and the Toto group on the matter of Alitalia," a spokesman said. The government is desperate to orchestrate a rescue of Alitalia to avoid mass layoffs at the airline. Alitalia, which has been under special administration since 2017 when workers rejected the latest in a long line of rescue plans, needs to find investors ready to inject fresh funds by April 30. A person familiar with the matter said on Friday that the denial by Di Maio's ministry appeared to pour cold water on media reports that the Toto family, which invested in a previous Alitalia rescue in 2008, was set to inject more money into the ailing airline.<br/>