July 1, 2019

Efromovich offers to bail out Alitalia

Bolivian-born entrepreneur German Efromovich, majority shareholder in Colombian airline Avianca, has offered to buy up to a 30% stake in troubled Italian airline Alitalia on the condition that he takes part in the management of the airline, according to Italian media.

Efromovich would fund the acquisition, which could reach over €240 million ($270 million), through family funds and trusts.

Efromovich would ask for the chief executive officer (CEO) post as a condition of his investment in the carrier.

Efromovich was removed in May as chairman of Avianca because of a loan breach.

He, however, still owns 78% of Avianca’s voting rights and 52% of its capital.

State-owned railway company Ferrovie dello Stato Italiane (FS) has until 15 July to collect binding bids for Alitalia.

The deadline was extended several times as FS struggled to find an investor that would take part in the rescue of Alitalia alongside the railway company, the Italian government and US carrier Delta Air Lines.