By Mauro Orru

The Italian government said it would hold exclusive negotiations with Delta Air Lines Inc. and Air France-KLM to privatize ITA Airways.

Italy's finance ministry said Wednesday that a bid from the consortium that also includes investment firm Certares Management LLC was deemed the most suitable as the government seeks to hand over control of ITA Airways, Italy's reincarnated flag carrier that succeeded loss-making Alitalia.

"At the end of exclusive negotiations, binding agreements will be signed only if the outcome [is] fully satisfactory for public shareholders," the ministry said in a statement.

Earlier this year, ITA Airways received an expression of interest from MSC Mediterranean Shipping Co. and Germany's Deutsche Lufthansa AG. The two companies had hoped the Italian government would retain a minority stake in ITA Airways.

Write to Mauro Orru at mauro.orru@wsj.com; @MauroOrru94

(END) Dow Jones Newswires

August 31, 2022 05:40 ET (09:40 GMT)

Copyright (c) 2022 Dow Jones & Company, Inc.
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