Alitalia shares were suspended after falling 15% on the Italian stock exchange, and government officials warned the struggling carrier could go bankrupt as talks with unions continued on a plan to rescue the company.

Parmalat Finanziaria SpA has begun proceedings to sell its US interests, but has decided to keep its Australian, Canadian and South African businesses, according to unsourced Italian news reports.

A GROUP of investors in Parmalat, the troubled Italian dairy giant, are challenging Italy’s new bankruptcy law to ensure bondholders get a say in the company’s debt repayment.

Italy tried to make amends today after a government official branded Germans as “stereotyped blondes with a hyper-nationalist pride”.