Italy seeks rail investment in Alitalia-sources

October 7, 2013

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

Cash-strapped Alitalia is at the centre of wrangling with Air France-KLM, which is considering raising its 25 percent stake, although a deal is being held up by disagreements over strategy and finances.

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

A meeting at Prime Minister Enrico Letta's offices in Palazzo Chigi with rail chief executive Mauro Moretti is expected later on Monday.