AF/KL Juggernaut Blunted a Bit: Alitalia Offer Cancelled
Apparently, the Italian Alitalia unions broke the deal up, though the language used is a bit strained. Here’s the story from AP:
“Air France-KLM said Monday that its offer to buy the struggling Italian airline Alitalia for 139 million euros ($220 million) was “no longer valid.”
Air France-KLM said Alitalia had failed to clarify the “legal situation” after talks on a possible takeover broke off this month.
Air France-KLM, which is based in Paris, said that it had told Alitalia of the decision and that the Italian airline did not meet the necessary conditions. An Air France-KLM spokeswoman would not comment beyond the statement.
There was no immediate comment from Alitalia, which is based in Rome.
Air France-KLM’s offer, announced March 14, called for the layoffs of 2,120 Alitalia employees, among other measures.
Air France-KLM’s bid was the only offer on the table, but negotiations broke down three weeks ago after the company refused to accept Italian union demands."
Of course, this may all be part of the negotiation strategy for the long-term, rather than a final withdrawal.