Air France-KLM may let stake fall via capital increase and then take majority stake at future point
Air France-KLM could allow its 25% stake in Italian airline Alitalia be diluted by not taking part in a EUR 300m capital increase, but then might take a majority stake afterwards if a new due diligence phase turns out to be positive, Italian language daily Milano Finanza reported. The unsourced report said that if in the case that due diligence is satisfactory, Air France will buy the unsubscribed portion of the capital increase with the aim of taking a majority stake. The report said that this would include the shares held by Intesa Sanpaolo and Unicredit in their role as guarantors of the capital increase.
The report said that Air France is likely to take a month to carry out due diligence. The report added that Air France will also insist on not paying a premium for the shares, and having a say in drawing up the industrial plan and in debt renegotiations.
The report noted that the deadline to subscribe to the capital increase is 16 November while unsubscribed parts of the capital increase will be available up to 31 December.
Source Milano Finanza daily edition