Credit Suisse, the investment bank, was appointed yesterday to conduct an independent evaluation of Alitalia's privatisation as a struggle broke out over the true condition of Italy's loss-making national airline.
Air One, the second-largest Italian carrier, which is widely viewed as the favourite in the contest to acquire Alitalia, has complained to the Italian finance ministry that it is being denied crucial information about the airline's operations.
The finance ministry, which appointed Credit Suisse to carry out the new evaluation, has set a deadline of July 2nd to receive binding offers for Alitalia.
The only bidders left in the contest are a consortium led by Air One and a consortium including Aeroflot, Russia's state-owned carrier.
According to people close to the bidding process, the letter that Air One sent to finance minister Tommaso Padoa-Schioppa said the airline had received too little information to put together a proper business plan for Alitalia's recovery.
The two bidders are especially interested in having full details of Alitalia's legal contracts, as well as data that would allow them to make an accurate assessment of the profitability or otherwise of Alitalia's route network.
Alitalia on Tuesday reported a net loss in the first quarter of this year of €135 million, down from €159 million in the same period last year.
Alitalia's net debt stood at €1.08 million as of April 30th, while its cash to hand and short-term financial credits amounted to €636 million.
In spite of Alitalia's repeated annual financial losses, steady loss of domestic market share and lack of a sufficiently modern aircraft fleet, government ministers have refused to consider letting the airline go bankrupt.
"To speak today of bankruptcy seems out of place to us," infrastructure minister Antonio Di Pietro said yesterday.
"We are working to sell Alitalia to the best bidder, the one that proposes the best business plan."
People involved in the bidding process said the argument over access to information about Alitalia was not thought likely to derail the privatisation of the airline, in which the Italian government holds a 49.9 per cent stake.
Air One's bid has considerable support in Italy's ruling centre-left coalition, and the airline has struck a useful alliance with Intesa Sanpaolo, one of Italy's two biggest banks, which is close to the government's thinking.
However, the finance ministry's view that the state should, if necessary, sell off its entire 49.9 per cent shareholding, has not commanded full support in the government. Some left-wingers wanted the state to retain a stake of up to 10 per cent.
Alitalia's share price was little changed yesterday at €0.78.
The airline's share price has fallen 16.5 per cent in the past month as the deadline for binding offers has drawn nearer.
