Alitalia In Trouble As Air France-KLM Pulls Offer

Law360, New York (April 22, 2008, 12:00 AM EDT) -- Struggling Italian airline Alitalia may soon make an emergency landing in bankruptcy, now that fellow carrier Air France-KLM has rescinded its takeover offer.

Air France-KLM pulled the €139 million ($222 million) bid on Tuesday, claiming that Alitalia had not adequately resolved the legal issues that caused the carrier to put its takeover plans on hold earlier this month. Air France-KLM, which broke off negotiations three weeks ago after reaching an impasse in its talks with Italian unions, originally made the offer on March 14.

The failure...
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