Preferred bidder for Alitalia SpA by mid-January

The Italian government will make its decision on the sale of Alitalia by mid-January, as per the information available.

The announcement represented yet another delay in a process. The government has tried for a year to sell its holding in Alitalia, canceling an auction in July after all suitors dropped out. Alitalia is losing about $1.5 million a day.

Alitalia's board meets Friday to recommend a bidder to enter exclusive talks for the government's 49.9%   stake in the airline. But the ultimate decision lies with the government, which owns the largest stake and is reportedly split over which company the airline should pick as the sole bidder.

"The government will in turn evaluate the indications expressed by the board and the documentation supporting them," according to a statement released by Premier Romano Prodi's office.

Air France-KLM and Italian airline Air One SpA are vying for Alitalia.