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Russia's Aeroflot could buy stake in loss-making Alitalia

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ROME, April 22 (RIA Novosti) - Russia's air carrier Aeroflot could reconsider buying the Italian government's 49.9% stake in cash-strapped Alitalia, although the airline could have its license revoked, Aeroflot's deputy director said Tuesday.

Aeroflot earlier took part in the tender to buy the stake, but the Alitalia management considered a bid by Air France-KLM more feasible. The French carrier announced Monday it was pulling out of the negotiations over a deadlock with trade unions.

At a meeting between Russia's incumbent President Vladimir Putin and Italian prime minister-elect Silvio Berlusconi in Sardinia last weekend, Putin signaled that Aeroflot might be interested in continuing negotiations on the takeover.

"The Russian president gave instructions that the talks be resumed. It is most likely that the Italian side after the Sardinia meeting put some new ideas forward for joint discussion," Lev Koshlyakov said.

Meanwhile, Vito Riggio, head of Italy's civil aviation agency ENAC, said on Tuesday the agency could revoke the carrier's license due to its existing financial problems.

During the meeting on April 18, Putin said the situation surrounding the Italian airline is complicated. "Debts need to be paid, the company has to be made profitable, and talks have to be held with the government and trade union," he said

Berlusconi earlier told reporters he was not ruling out a resumption of talks between Aeroflot and Alitalia, which stalled last November.

Alitalia's losses in 2006 were 380 million euros ($604 million). A strategic investor picked by the Italian authorities will have to implement a rescue plan for the carrier.

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