Italy lays out conditions for ITA Airways sale, likely to Lufthansa

Italy's Prime Minister Giorgia Meloni on Wednesday approved a decree to sell an initial minority stake in ITA Airways with the aim of facilitating the full privatisation of the state-owned carrier, a government statement said on Wednesday. A draft of the decree seen by Reuters stipulated that another airline must end up with a majority stake in ITA after the privatisation process is concluded, making clear the government did not want a fund to purchase the carrier. It also allows bidders to buy stakes in ITA through one or more capital increases Lufthansa is the frontrunner to enter ITA's capital, sources have said. They added that the company has said it wants a minority stake in the immediate term. Lufthansa and ITA declined to comment on the government's move, but ITA CE Fabio Lazzerini said earlier on Wednesday that talks with the German company were ongoing "in a very collaborative way". In an effort to speed up the sale process, the decree removed an obligation for the Treasury to immediately sell a majority stake in the carrier, as laid out by the previous government of Mario Draghi earlier this year. However, it said the Treasury must have a say on any new shareholders during the sell-off process. The privatisation of the carrier, which officially replaced loss-making Alitalia in 2021, has proved a headache for the Treasury.<br/>