Reuters.uk – Despite wildcat strikes and talk of bankruptcy hanging over Alitalia, two investors have bought big stakes in the carrier, and hedge fund sources say it is part of a trend to buyairlines seen as cheap in a bull market.
Walter Capital Management and Newton Investment Management acquired a 12.4 percent stake in the Italy’s biggest airline last month, according to Italian watchdog Consob. Neither fund is known as a vulture-style asset stripper.
“Newton is a long-term investor and bought the stock in a recent issue as it is positive on the company’s outlook,” said Newton, a subsidiary of U.S.-based Mellon Financial Corp. Newton has 4.2 percent of Alitalia’s stock.
Walter Capital, known in the hedge fund industry as a value investor with around $2 billion (1.1 billion pounds) under management, holds around 8.19 percent of Alitalia’s stock and is the biggest shareholder after the Italian government, which holds 49.9 percent. No one at Walter Capital was available for comment.
