Etihad says agreed principal terms to buy 49% of Alitalia
Published on Jun 25, 2014 5:14 PM
ABU DHABI (REUTERS) - Abu Dhabi's state-owned Etihad Airways said on Wednesday it had agreed principal terms and conditions to buy a 49 per cent stake in Italy's loss-making airline Alitalia.
A tie-up with cash-rich Etihad is seen as a last chance to turn around Italy's flagship carrier, which has made an annual profit only a few times in its 68-year history and received numerous state handouts before being privatised in 2008.
The two airlines will now finalise the deal as soon as possible, subject to regulatory approvals, they said in a joint statement without elaborating on the terms of the deal.
The board of troubled Alitalia voted on June 13 to accept an offer by Etihad to invest, but did not give details.
To continue reading, log in if you are a subscriber
Enjoy 2 weeks of unlimited digital access to The Straits Times. Get your free access now!