Italy extends deadline for ITA Airways takeover talks, sources say

Italy has extended to Oct. 31 the deadline for exclusive talks with a consortium led by US private equity fund Certares over a majority stake in ITA Airways, two sources close to the matter said on Friday. The talks were initially meant to expire on Sept. 30. Certares, backed by Air France-KLM and Delta , is willing to pay E350m for a 50% stake plus one share of the state-controlled airline, the sources said. The offer also envisages a capital increase of about E600m, which would be launched some time after the closing of the deal, though exact timing has yet to be set, the sources added. Delta Air Lines and Air France-KLM plan to become commercial partners of ITA, the successor company to Alitalia, but do not intend to take a stake in the carrier at this stage, they said in August. The Certares-led consortium was picked by Italy's outgoing government over a rival offer from shipping group MSC and Germany's Lufthansa.<br/>