Alitalia deal collapses, new Chairman appointed

Takeover negotiations between Alitalia and Air France-KLM have collapsed and Maurizio Prato has resigned from his position as the company’s Chairman and Director.

Alitalia held an emergency board meeting "in order to take the necessary and opportune resolutions", and today the firm said Aristide Police would take over the Chairman position.

Maurizio Prato had warned the unions involved in the negotiations that the company risked going bankrupt if they did not accept the deal.

The Italian government has been trying for more than a year to sell its 49.9% stake in the Alitalia and says there are no other bidders.