Italy has chosen Delta Air Lines and Air France-KLM as the preferred bid to take over national carrier ITA Airways. They were chosen ahead of MSC Group, partnering with German airline Lufthansa, which were considered front-runners.

The airlines will enter exclusive talks for the takeover with lead investor, Certares, which has reportedly proposed to buy almost 56% for US $599 million.

Italy would keep a 44% stake and have representation on a future ITA board.

MSC and Lufthansa had filed a bid to buy 80% of ITA Airways.

The Italy economy ministry said the Delta– Air France bid was “deemed to be the most in line with the objectives set.”

“At the end of the exclusive negotiations, binding agreements will only be signed if their content is fully satisfactory for the public shareholder,” the ministry said.

“From our point of view, our joint offer with MSC was the better solution for ITA,” Lufthansa said in response.

“Evidently, a path is now being chosen that allows more state influence and does not envisage the complete privatisation of ITA.”

Air France-KLM previously had a 25% stake in Alitalia.