The Wall Street Journal-20080206-Alitalia SpA- Despite Snub- Air One May Make Another Bid

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Alitalia SpA: Despite Snub, Air One May Make Another Bid

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Reuters

Milan business leaders are supporting a promised counterbid for Alitalia SpA, hoping to stave off flight cutbacks at Malpensa, the airline's northern Italian hub. Domestic rival Air One SpA, whose previous bid for the state's 49.9% stake in Alitalia was snubbed, said it would present an offer soon for Alitalia, which is in exclusive talks until mid-March with Air France-KLM SA. Milan's Chamber of Commerce said it may back Air One's bid, which has the support of Italy's biggest retail bank, Intesa Sanpaolo SpA. AirOne is challenging Alitalia over the exclusive talks in court. Air France-KLM backs plans for Alitalia to slash flights at Malpensa by 70%, while Air One has said it would keep the airport's standing.