Alitalia approves $336 million capital increase
MILAN (AP) — Alitalia’s board has approved a 250 million euro ($336 million) capital increase to save the struggling airline until it can be taken over by Abu Dhabi-based Etihad Airways.
The Italian airline has been trying to overcome the final hurdles to sign an agreement for Etihad to take over a 49-percent Alitalia stake with an investment of 560 million euros. That has included talks with investors on restructuring debt and with unions on workforce reductions.
The capital increase approved Friday will come from major stakeholders. The board also approved 2013 financial results but is not making them public. Italian media reported that it racked up losses of 569 million euros. Alitalia has not been publicly traded since it was taken over by a consortium of Italian entrepreneurs five years ago.