The Italian government said Wednesday has approved an offer from a group of investors to buy the assets of the bankrupt Alitalia airline after getting them to raise the bid to at least 1.052 billion euros ($1.33 billion). The approval, announced by the Economic Development Ministry, clears the way for Alitalia's administrator Augusto Fantozzi to sign a final deal with CAI Compagnia Aerea Italiana (Italian Air Company). The new airline is to launch by early December - two years after the government started the long and difficult process of unloading its 49.9 percent stake in long-troubled Alitalia. Economic Development Minister Claudio Scajola said in a statement that an oversight committee asked CAI to raise its original 1 billion euros ($1.26 billion) bid by 52 million euros based on the findings of adviser Banca Leonardo, which audited the assets CAI will take over. The bank put their market value at 1.051 billion euros. Alitalia said CAI will take on more than 625 million euros of Alitalia's debt, while the rest will be paid in cash.
