The Italian Treasury Ministry invited bids for no less than 30.1 percent of the national carrier Alitalia and all convertible bonds in the state's possession as the privatization of the company formally began on Friday.

The invitation, which expires on Jan. 29, was posted on the Ministry's website and will soon be published to the Italian and international press, according to Italian News Agency ANSA.

The ministry's invitation is open to persons or companies, both Italian and foreign, which posses assets of no less than 100 million euros (about 130 million U.S. dollars).

The bids must include a detailed business plan which is in line with the government's goal of correcting the company's finances and be conducive to its future development.

Alitalia's future owners will also be obliged to maintain the airline's national identity and guarantee the quality and quantity of services offered, according to the Treasury Ministry.

The ministry currently holds 49.9 percent stake of Alitalia and may sell its entire share if it receives the right offer.

The convertible bonds held by the ministry include 62.5 percent of 714million euros (about 928 million dollars) issued in 2005.

In addition, 33.229 percent of Alitalia is on the stock market, 9.951 percent is held by Walter Capital Management, 4.918 percent by Newton Investment Management and 2.002 percent by Norges Bank.

Addressing parliament earlier this month, Italian Economic Minister Tommaso Padoa-Schioppa explained that the government decided to privatize Alitalia because the company "must be totally run as a regular business and under the rules of business."

He admitted the decision to sell recognised "the state's lack of success as a stockholder and as a regulator. It was unable to guide the company's transition from a state monopoly to a company able to compete in the open market."

Alitalia's current crisis, Padoa-Schioppa observed, "is the result of a number of causes from political interference to union fragmentation and unrest."

Alitalia has not yielded annual profit since 2002 and has warned total losses for this year could exceed 221 million euros (about 287.3 million dollars) in 2005.

Source: Xinhua