Alitalia hires bankers to tackle cash crisis (updated)
03/09/2013 17:29
* May need to raise more than 400 mln euros * Investor lock-up period expires mid-October * Etihad mentioned by local press as potential partner * Etihad not keen in another European investment-source (Adds comment from Etihad source) By Lisa Jucca MILAN, Sept 3 (Reuters) - Struggling Italian airline Alitalia has hired boutique investment bank Leonardo & Co to help tackle a liquidity crisis that may see it running out of cash before year's end. The move is aimed at finding ways to raise more than 400 million euros to keep the loss-making carrier afloat, a source familiar with the situation said. Alitalia has struggled to make a profit throughout its life and has been bailed out repeatedly by the Italian state. It agreed salary cuts with unions in June and its chief executive and board members reduced their pay by 20 percent ahead of the drawing up of a new strategic plan. ID:nL5N0EI3UY The airline, which quadrupled its net loss to 280 million euros in 2012 compared with the year before, said in July it needed 300 million euros this year to keep running but expected to break even by 2015. The airline, which is 25 percent owned by Air France-KLM AIRF.PA , was rescued from bankruptcy in 2008 and bought by a consortium of Italian companies including bank Intesa Sanpaolo ISP.MI , road operator Atlantia ATL.MI and holding company IMMSI IMSI.MI , the owner of scooter-maker Piaggio. The investors might sell out after the expiry in mid-October of a lock-up period, paving the way for new shareholders. Alitalia said in a statement it had hired the bankers, owned by the Banca Leonardo group and founded by Gerardo Braggiotti, to "assist the company in its relationships with the banks." Italian newspapers said last month Alitalia was in talks with Etihad Airways on a commercial deal that might lead to the Abu Dhabi-based carrier taking a stake. ID:nL6N0GP09Q Alitalia and Etihad were also mentioned in the context of a possible tie-up earlier this year, but Etihad said at the time there were no talks between the two firms beyond those on code sharing. ID:nL5N0B439T Etihad was not available for comment on Tuesday but a source at Etihad said that, with a stake in Air Berlin and a commercial partnership with Air France-KLM, Etihad was not keen on another investment in a European carrier. Alitalia earlier this year hired turnaround specialist Gabriele del Torchio to lead it back to profit. ID:nL5N0D54B4 The airline has pushed back to the end of September the approval of its mid-year financial statement, that was due to be approved by the board, mainly to address a tax dispute. ID:nL5N0EQ35H . Alitalia was no available for comment. ($1 = 0.7582 euros) (Editing by David Cowell) ((elisabetta.jucca@thomsonreuters.com)(Tel +39 02 66129442)(Reuters Messaging: elisabetta.jucca.thomsonreuters@reuters.net)) Keywords: ALITALIA ADVISER