Italy looking for two bids for airline ITA as deadline looms -sources

Italy expects to attract at least two rival bids for ITA Airways, the successor to Alitalia, before the deadline for its part privatisation expires at midnight on Monday, two sources close to the matter said. Shipping group MSC, which is working with Germany’s Lufthansa, is seen as the leading candidate, but a consortium comprising US private equity fund Certares, Air France-KLM and Delta is also expected to make a competitive offer, the sources said. Italy’s Treasury managed the bidding process to ensure there would be competition among the contenders, both sources said, with one adding that both Air France and Delta were considering an investment in ITA, should Certares’ bid be successful. US-based Indigo Partners, an investor in low-cost carrier Wizz Air which expressed its interest in ITA, is expected to drop from the race, the sources said, adding that the rule that requires the majority shareholder in a European airline be based in Europe proved a hurdle for the fund. A Lufthansa spokesman confirmed the German airline presented a joint offer with MSC, but did not give any details. Under a government decree, Rome plans to privatise ITA through a direct sale while retaining a minority, non-controlling stake in a first stage. It hopes to clinch a deal with the prospective buyer before the summer break.<br/>