Air France-KLM Group, the world’s largest airline by sales, agreed to buy Alitalia SpA in a bid valued at 747 million euros ($1.2 billion) as part of the Italian government’s plan to save the unprofitable carrier from bankruptcy.
Air France-KLM will swap one of its shares for every 160 of Alitalia’s, valuing the Italian airline at 139 million euros, or 10 cents a share, Air France said. That’s 81 percent less than the closing price March 14. Air France offered 608 million euros for the carrier’s convertible bonds. Alitalia’s board accepted the bid after a 12-hour meeting yesterday in Rome.