PM favours Italian Alitalia bid

Air France-KLM is proposing substantial job cuts at Alitalia

Italy's outgoing Prime Minister Romano Prodi has said a home-grown takeover of Alitalia, which is set to be bought be Air France-KLM, would be desirable.

He was speaking as bosses of the Franco-Dutch airline were preparing to restart talks with unions over their proposals to cut jobs at Alitalia.

The company needs to win union backing in the next week or the deal will fail.

Former Prime Minister Silvio Berlusconi has said he will reject the takeover if he wins next month's elections.

Mr Berlusconi, who opinion polls suggest is currently in the lead, said an Italian bid would rescue the airline from the "arrogant French offer".

He is backing Air One, whose one euro cent bid for Alitalia was rejected by the government.

Air One's chairman Carlo Toto told an Italian newspaper it would be ready to present a new offer in three weeks.

But speaking on Italian television, Romano Prodi cast doubt on whether an Italian-led offer would be forthcoming.

"Of course it is desirable. The problem is whether it's there," Mr Prodi said.

"A proposal must be concrete, backed by resources, have an industrial plan - serious things. So far we have not seen anything except for the plan that we have taken into consideration," he said.

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