Shareholders of Alitalia on early Tuesday approved a plan to raise 300 million Euros, or $407 million in fresh capital for the Italian carrier. This will be perused by a marathon meeting in Rome. The plan also requires influencing the largest investor, Air France-KLM, to boost up its contribution to repair the debt-laden airline. This has been making no profit from a decade.

The meeting ended without any instant decision from the French-Dutch airline. The airline at present possesses 25% of Alitalia, increasing the chances of weeks of uncertainty concerning Alitalia's future possession structure and long-term policies.

Shareholders of Alitalia are not openly traded. They voted in general to support a plan to increase 300 million Euros through a proposal of new stock choices to existing shareholders. This was stated by Alitalia.

The company said that all shareholders will have to subscribe to the share offer until November 15.

Expecting a modification in the stability of ownership in the airline, Alitalia said it had planned to suspend the current board of directors till the end of the capital increase next month.

Under the plan, Italy's state-owned post office, Poste Italiane, has settled to purchase up to 75 million Euros ($102 million). These Euros are worth of shares that are not claimed by existing shareholders, equal to a 12% stake.

Source: Top News