Air France considers Alitalia stake dilution: Report
PARIS (REUTERS) - Franco-Dutch airline Air France-KLM is considering diluting its stake in struggling Italian carrier Alitalia if a deeper restructuring fails to take place, French newspaper Les Echos reported on Monday.
Air France-KLM owns a 25 percent stake in Alitalia and appears willing to let this fall to 11 percent by not taking part in a 300 million-euro (S$508 million) capital increase, despite having approved the share issue itself, the report said, citing one unnamed source.
Air France-KLM declined to comment.
Air France is not obliged to participate in the cash call for the Italian airline and has always said it would attach strict conditions before giving any help.