Manufacturing Industry
European Commission investigates Alitalia and Air France's proposed share swap
Airline Industry Information, April 4, 2002
AIRLINE INDUSTRY INFORMATION-(C)1997-2002 M2 COMMUNICATIONS LTD
The European Commission has launched an investigation into Alitalia and Air France's plans for a capital tie-up.
The airlines announced late last month that Air France had agreed to acquire a stake of up to 3% in Alitalia in exchange for a holding of the same value in Air France. After receiving notification of the plans the Commission launched the investigation, however no details have currently been made available.
The Commission can block a merger or a tie-up if it decides it is not compatible under the European Union's common market competition rules, Reuters reported.
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