Air France-KLM has broken off acquisition negotiations with Alitalia after failing to convince the Italian airline’s workforce to accept the terms of its takeover plan.

Alitalia says chairman and chief executive Maurizio Prato has resigned from his position. The airline’s board will convene tomorrow to discuss the situation.

A spokeswoman for Alitalia confirms that the talks are “finished”. Air France-KLM has yet to comment on the matter.

Alitalia’s board agreed in principle to the takeover proposal last month but it hinged on several conditions including Air France-KLM’s being able to secure the backing of unions.

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