Italy seeks rail investment in Alitalia-sources

Reuters

ROME, Oct 7 (Reuters) - The Italian government has askedstate railway operator Ferrovie dello Stato (FS) to considerinvesting in troubled national carrier Alitalia, sources closeto the situation said on Monday, confirming a weekend report inthe daily Il Messaggero.

Cash-strapped Alitalia is at the centre of wrangling withAir France-KLM, which is considering raising its 25 percentstake, although a deal is being held up by disagreements overstrategy and finances.

"The government has asked FS to consider an intervention inAlitalia," said one source, who spoke on condition of anonymity.

A meeting at Prime Minister Enrico Letta's offices inPalazzo Chigi with rail chief executive Mauro Moretti isexpected later on Monday.

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