Etihad closer to investment deal with Alitalia

[PARIS] After more than five months of negotiations, Etihad Airways of Abu Dhabi confirmed on Sunday that it was nearing an agreement that could lead to a sizeable investment in Alitalia.

In a joint statement, the airlines said Etihad would formally submit a letter to Alitalia's board in the coming days detailing the conditions of a non-binding offer for a stake of up to 49 per cent of the money-losing Italian airline, which received a 500 million euro (S$855 million) government-led bailout late last year.

"We are delighted to be able to move forward with this process and look forward to the successful conclusion of the proposed transaction with Alitalia," said James Hogan, Etihad's chief executive.