Air France-KLM last night pulled its proposal to acquire struggling Italian airline Alitalia amid crumbling negotiations.
"Air France-KLM has indicated to Alitalia that the contractual arrangements announced on March 14th with a view to launching a public exchange offer on Alitalia were no longer valid," Air France-KLM said in a statement. "The conditions precedent that had to be satisfied prior to launching were not fulfilled."
Alitalia's board of directors last month gave Air France-KLM Group approval to acquire the financially strapped Italian airline, but the deal required approval from Alitalia shareholders, unions and the Italian government
(BTNonline, March 17).