Speculation of a better offer from Air France-KLM for Alitalia in make-or-break talks with unions, or of a rival bid, mounted today and sent shares in the sickly airline so high they were briefly suspended.
As Air France-KLM's head Jean-Cyril Spinetta headed for more talks in Rome with unions on his offer, which would entail job cuts of over 10 per cent of the workforce, politicians with an eye on an April 13-14 election played up the chance of a domestic deal.
Air France-KLM would pay about two days' worth of revenues for Alitalia in its share swap offer, which also promises a bond buyback and a 1 billion euro capital increase for the airline, which loses over 1 million euros a day.
Opposition leader and current poll favourite Silvio Berlusconi has raised the possibility of an Italian bid to rival that of Air France-KLM, which has said it wants approval from unions and the next government for its offer.
The outspoken media billionaire has already said he would veto the Air France-KLM takeover if he becomes prime minister and even suggested his children might join a rival bid.
Spinetta meets unions from 1300 GMT on Tuesday to try to hammer out a deal before a deadline of March 31st set by the Franco-Dutch carrier for meeting conditions on its bid, which also include resolution of a $2 billion lawsuit over flight cuts at Malpensa airport near Milan.
Newspapers suggested today he might sweeten the offer by reducing proposed job cuts of around 2,100 and that he could extend the deadline for talks. Air France declined to comment on the reports.
Outgoing Prime Minister Romano Prodi said yesterday that an Italian offer would be desirable but so far no serious bid had been made to counter that of Air France-KLM, which was approved by his centre-left government earlier this month.
Centre-left leader Walter Veltroni, who will face Berlusconi at the ballot box, said Air France-KLM was the only option.