Italy's government has picked a bid by U.S. private equity fund Certares Management LLC and backed by Air France-KLM SA (ENXTPA:AF), and Delta Air Lines, Inc. (NYSE:DAL) to start exclusive talks over the sale of a majority stake in Italia Trasporto Aereo S.P.A. (ITA Airways), the Treasury said on August 31, 2022. The government had aimed to complete the part-privatisation of the successor to Alitalia over the summer, but then asked the two rival consortia to review their initial offers as it deemed they did not meet its goals. The offer, whose details were not publicly disclosed, would leave the Treasury with "at least" a 40% stake and the right to appoint the company's chairman and exercise a veto on certain "strategic choices", a source has told Reuters.

The Certares-led bid was facing a rival bid presented by shipping group MSC and Germany's Deutsche Lufthansa AG (XTRA:LHA), which a source said was offering between EUR 850 million ($847 million) and EUR 900 million for an 80% stake. MSC declined to comment while Lufthansa could not immediately be reached for a comment. Prime Minister Mario Draghi's government wants to sign a preliminary agreement with the preferred bidder by Sept.

10, sources have said. However, any deal would probably close in the final quarter of the year by which time Italy should have a new government after a national election on Sept. 25, potentially complicating the issue further.