A group of Italian investors headed by the former chairman of Italy's state broadcaster RAI announced Thursday it had made a bid for control of national carrier Alitalia, according to dpa. Antonio Baldassare, whose group the Alitalia board - citing lack of information provided - had last month excluded from the bidding, told the ANSA news agency Thursday he was "still in the game". Before Baldassare's announcement, Air France-KLM and Italy's second largest airline AirOne appeared to be the only two contenders left in race to take over Alitalia. Earlier Thursday - the deadline set by Alitalia for the presentation of offers - French-Dutch airline Air France-KLM announced it had made a non-binding preliminary offer for Alitalia. Italy'sAirOne had also indicated it would also present an offer before the deadline's expiry. In a so-called Letter of Interest, Air France set out all the benefits a merger between the companies could bring for both sides. "The project foresees, first of all, the reconquest of the Italian market by Alitalia, notably because of the profitable development of its network, the extension of its brand and the affirmation of its identity," the letter read. In addition, Air France said that a joint company "can offer its passengers a choice of schedules and destinations unequalled in Europe and the world." A precise amount of money was not mentioned in the letter. However, the website of the French business daily La Tribune said that the offer would be below 1.1 billion euros (1.62 billion dollars). Air France noted that at this stage of the process, a Letter of Interest "does not legally commit any candidate." Jean-Cyril Spinetta, CEO of Air France-KLM, said a possible merger "would not only benefit the passenger, but also contribute to the group's economic and financial goals for 2009 and 2010." Meanwhile, contrary to earlier reports, German carrier Lufthansa - which has a code-sharing partnership with AirOne - announced Thursday it would not be making an offer for Alitalia. "Based on the current level of information available, Lufthansa is not making a bid," a spokeswoman said. The spokeswoman said the German airline had made an exhaustive study of the risks and chances involved in such a takeover. The board of Alitalia, of which the Italian state holds a 49.9- per-cent stake, was scheduled to formally announce it had received the bids by the end of Thursday. The Italian government has stated it intends to identify a buyer for Alitalia before Christmas. On Wednesday Prime Minister Romano Prodi said that the winning-bid would have to include "an industrial plan that can turn around and strengthen the company" adding. "may the best one win". Unions have staunchly opposed any privatization plan that would require major job cuts and the government's previous bid to sell its Alitalia stake through an auction collapsed in July after potential buyers rejected conditions including a limit on the number of lay- offs.
