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Italy selects Certares for exclusive ITA Airways negotiations.

MILAN The Treasury announced on Wednesday that Italy had chosen a consortium led by US private equity fund Certares and supported by Air France-KLM and Delta Air Lines Inc for exclusive talks to acquire a controlling stake in ITA Airways.

The offer, the specifics of which were not made public, would give the Treasury “at least” 40% ownership in ITA, as well as the authority to nominate the company’s chairman and reject certain “strategic choices,” according to a source quoted by Asian Trade.

Sources previously told Asian trade that Certares, which has its European headquarters in Milan, is asking about 600 million euros ($599 million) for a 60 percent ownership stake in the successor to Alitalia.

Related: Italy’s antitrust agency is investigating Samsung for allegedly unfair business practises.

It wasn’t clear right away if the two airlines wanted to take ownership stakes or work as business partners, which would expand the reach of ITA. Air France and Delta did not immediately issue a statement.

Shipping company MSC and German airline Lufthansa put in a competing bid. According to a source, they offered between 850 and 900 million euros for a greater 80 percent share, which was more than what the consortium bid.

“We acknowledge the decision. “We remain certain that our proposal with MSC is the superior choice. ” According to a Lufthansa representative, Italy selected the option that preserved greater state power. MSC declined to comment.

“This is unexpected given MSC-Lufthansa was previously viewed as the favoured bidder,” said Stifel Research’s Johannes Braun.

“From the point of view of an investor, it’s a relief,” he said, citing worries about Alitalia’s history of losing money.

The government of Prime Minister Mario Draghi hopes to sign a preliminary agreement with the favouring bidder by September 10.

However, any deal would likely be finalised in the fourth quarter of the year, by which time Italy would have a new government following the September 25 national election, which might further complicate the matter.

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The leading Brothers of Italy party has demanded that the future administration make a decision about ITA. ($1 = 1.0013 euros)

Italy selects Certares for exclusive ITA Airways negotiations.

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