Get 40% Off
👀 👁 🧿 All eyes on Biogen, up +4,56% after posting earnings. Our AI picked it in March 2024.
Which stocks will surge next?
Unlock AI-picked Stocks

Shipper MSC wants lead role in deal for ITA Airways

Published 27/01/2022, 06:29
Updated 27/01/2022, 18:41
© Reuters. FILE PHOTO: The MSC logo is pictured on working helmet during a press visit of the MSC Meraviglia class ship at the STX Les Chantiers de l'Atlantique shipyard site in Saint-Nazaire, France, September 2, 2016. REUTERS/Stephane Mahe

By Giulia Segreti

ROME (Reuters) -Shipping company MSC, which has teamed up with Lufthansa on a potential bid for Alitalia successor ITA Airways, wants a majority stake in the airline and to run the carrier itself, its chairman was quoted as saying on Thursday.

State-owned ITA, which has replaced cash-strapped Alitalia and started flying in October, has already been looking for equity partners.

On Monday MSC, controlled by the Aponte family, and Lufthansa said they were interested in ITA and had asked for a 90-day exclusivity period to study a deal.

"The main point is to have the majority of ITA Airways. (Lufthansa) can enter as a commercial partner or minority shareholder," Gianluigi Aponte, founder and chairman of MSC, one of the world's leading shipping companies, told Corriere della Sera.

He said MSC would want to manage ITA and would not be a "sleeping partner."

Lufthansa has said it would use the exclusivity period to explore all the options for cooperation, "including a possible equity investment" in the Italian carrier.

Lufthansa declined to comment further on Thursday.

An industry source said MSC could take on most of the effort needed for an ITA acquisition, should Lufthansa opt for a commercial role only.

In a separate report in daily Il Messaggero, Aponte was quoted as saying it was "likely" ITA could be worth up to 1.5 billion euros ($1.7 billion) and that MSC would verify the value as soon as it gained access to the necessary documents.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

"We are ready, and the deal could be closed earlier, much earlier than the 90 days," he was quoted as saying.

The Italian government was expected to give its green light to negotiations in the next few days, allowing ITA's management to decide whether to enter exclusive talks with the two partners in the short term.

Geneva-headquartered MSC, which has freight and logistics and passenger divisions - with brands including MSC Mediterranean Shipping Company, MSC Cruises and Grandi Navi Veloci - aims to create synergies with ITA in the cargo and passengers businesses.

A deal between MSC and ITA could be transformational for the shipping group, the industry source said, adding the cargo operations of ITA could be expanded quickly along with its passenger business.

The Italian airline currently operates a fleet of 52 aircraft that is around less than half that of Alitalia's original fleet and devotes only four jets to the cargo business.

In January, MSC became the world's largest container carrier in terms of operated vessels.

($1 = 0.8913 euros)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.